M K G FINANCIL SERVICES PRIVATE LIMITED vs UNION OF INDIA MINISTRYOF FINANCE APPELLATE AUTHORITY DEPARTMENT OF FINANCIAL SERVICES & ANR.

Judgment text excerpt

$~50 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of Decision: 06th April, 2026 Uploaded on: 07th April, 2026 + W.P.(C) 5904/2020 & CM APPL. 21338/2020, CM APPL. 21862- 21863/2026 M K G FINANCIL SERVICES PRIVATE LIMITED. ....Petitioner Through: Mr. Rahul Agrawal, Mr. Rajesh Agrawal and Mr. Sunil Dhamija Advocates (M: 9910056062). versus UNION OF INDIA MINISTRY OF FINANCE APPELLATE AUTHORITY DEPARTMENT OF FINANCIAL SERVICES & ANR. .....Respondents Through: Mr. T. P. Singh, SPC for UOI (M: 9971529687). Mr. Ramesh Babu, Ms. Manisha Singh, Ms. Tanya Chowdhary and Mr. Rohan Shrivastava, Advs. for RBI. CORAM: JUSTICE PRATHIBA M. SINGH JUSTICE MADHU JAIN Prathiba M. Singh, J. (Oral) 1. This hearing has been done through hybrid mode. 2. The present petition has been filed under Article 226 and 227 of the Constitution of India by the Petitioner, which is a Non-Banking Financial Company (hereinafter, ‘NBFC’), inter alia, challenging the order dated 11th February, 2020 passed by the Respondent No. 1 i.e., the Appellate Authority which confirmed the order dated 12th September, 2018 passed by the Reserve Bank of India – cancelling the registration of the Petitioner as an NBFC. The W.P.(C) 5904/2020 Page 1 of 4 Signature Not Verified Digitally Signed By:DEVANSHU JOSHI Signing Date:07.04.2026 15:30:28 order dated 12th September, 2018 was communicated to the Petitioner vide letter dated 17th September, 2018. Further, the challenge in the present petition is also to the Net Owned Fund (hereinafter ‘NOF’) notification being Notification No. 132/CGM(VSNM)-99 dated 20th April, 1999. 3. The brief background of the present case is that the Petitioner had filed an application for registering itself as an NBFC and it was granted registration with the Reserve Bank of India (hereinafter, ‘RBI’