Failure to Meet Rs. 200 Lakh Net Owned Fund Mandate within Deadline: Delhi HC sets aside Cancellation of NBFC Registration

The Delhi High Court set aside the cancellation of a Non-Banking Financial Company (NBFC) registration after it failed to meet the Reserve Bank of India's (RBI) mandate of maintaining a net-owned fund of ₹200 lakh by the prescribed deadline. The court held that the NBFC had made substantial efforts to comply with the mandate and that the cancellation was unwarranted. The decision emphasizes the court's stance on providing reasonable flexibility to entities genuinely attempting compliance, especially in regulatory matters involving financial institutions. The ruling also highlights the importance of balancing regulatory enforcement with fairness, ensuring that businesses are not unduly penalized for compliance delays.