RVS FINANCIAL SERVICES LIMITED vs UNION OF INDIA MINISTRY OF FINANCE APPELLATE AUTHORTIY & ANR.

Judgment text excerpt

$~51 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of Decision: 06th April, 2026 Uploaded on: 09th April, 2026 + W.P.(C) 10062/2020 & CM APPL. 32037/2020 RVS FINANCIAL SERVICES LIMITED .....Petitioner Through: Mr. Abhishek Krishna, Advocate. versus UNION OF INDIA MINISTRY OF FINANCE APPELLATE AUTHORTIY & ANR. .....Respondents Through: Ms. Arunima Dwivedi CGSC with Ms. Swati Jhunjhunwala, Ms. Himanshi Singh and Ms. Monalisha Pradhan, Advs. for UOI (M: 9810916537). 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 22nd June, 2020 passed by the Respondent No. 1 i.e., the Appellate Authority which confirmed the order dated 2nd August, 2018 passed by the Reserve Bank of India– cancelling the registration of the Petitioner as an NBFC. The order dated 2nd August, 2018 was communicated to the Petitioner vide letter Signature Not Verified Digitally Signed By:DHIRENDER KUMAR W.P.(C) 10062/2020 Page 1 of 4 Signing Date:09.04.2026 18:14:09 dated 2nd August, 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’) on 4th January, 2003. The Petitioner was thereafter