GOLI FINANCE LIMITED vs UNION OF INDIA & ANR.

Judgment text excerpt

$~36 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of decision: 15th January, 2026 Uploaded on: 22nd January, 2026 + W.P.(C) 7040/2020 & CM APPL. 24001/2020 GOLI FINANCE LIMITED .....Petitioner Through: Mr. Rohan Rai, Adv. versus UNION OF INDIA & ANR. .....Respondents Through: Mr. Ramesh Babu, Ms. Manisha Singh, Ms. Tanya Chowdhary, Ms. Nisha Sharma, Mr. Rohan Srivastava, Advs. for RBI (9971671294) CORAM: JUSTICE PRATHIBA M. SINGH JUSTICE MADHU JAIN Prathiba M. Singh, J. (Oral) 1. This hearing has been done through hybrid mode. 2. The challenge in the present writ petition is for setting aside the impugned order dated 11th May, 2020 passed by the Appellate Authority under Section 45-IA of the Reserve Bank of India Act, 1934 (hereinafter “RBI Act”). Vide the impugned order, the RBI’s order dated 5th February, 2019 cancelling the Petitioner’s Certificate of Registration as a Non-Banking Financial Company (hereinafter “NBFC”) was upheld. 3. The case of the Petitioner is that the RBI had issued a notification dated 20th April, 1999 by which the “Net Owned Fund” (hereinafter “NoF”) of an NBFC, which wanted to commence its business on or after 20 th April, 1999, was increased from Rs. 25 lakh to Rs.2 crores. However, the NBFCs which were already registered with RBI or whose applications seeking the Signature Not Verified Digitally Signed By:DHIRENDER KUMAR W.P.(C) 7040/2020 Page 1 of 6 Signing Date:22.01.2026 12:20:04 Certificate of Registration were filed prior to 20th April, 1999, were exempted from application of the said notification. 4. The Petitioner was issued the Certificate of Registration by the RBI on 20th January, 2001. Thereafter, the Petitioner was converted to Category-B NBFC and a fresh Certificate of Registration was issued on 30th December, 2014. In the mea