NEWS & ADVICE : PERSONAL LOAN
SKS Microfinance’s business registration cancelled in Mahabubnagar district of AP
By Vaibhav Aggarwal
Jun 18, 2012
Print    Email    RSS   

Swayam Krishi Sangam Microfinance (SKS), has been prohibited from conducting business in Mahabubnagar District of Andhra Pradesh. The government of Andhra Pradesh has penalized the NBFC by cancelling its registration for disregarding the rules of the government in conducting business.

The District Rural Development Agency (DRDA) issued a letter to SKS Microfinance stating that the agents of the company violated the rules of Andhra Pradesh Microfinance Institutions (Regulation of Money Lending) Act, 2010 by visiting individual houses and collecting from them.

The government passed an order saying, "Since SKS Microfinance has violated the conditions of MFI Act, the registration is hereby cancelled with immediate effect and SKS Microfinance is prohibited from conducting financial activities in Mahbubnagar District".

The order further said, "The agents who visited the houses of loanees in the district were other than the notified agents... collecting money from door to door is gross violation of MFI Act".

The DRDA earlier sent the company a show cause notice to which the company had replied, but the reply was termed as ‘not satisfactory and not true.'

On the matter, a spokes person of SKS said, "We have been working closely with the authorities concerned to bring normalcy to the business in Andhra Pradesh. We are hopeful of an early solution. We have initiated the process for contesting the order in a court of law."

 

 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Carnival of Indian Personal Finance Blogs #2
This is how a bank lends money
Is the Base Rate system really transparent?
Know about Personal loan against fixed...
Loans to assist people with bad credit scores


MY NAME IS RAVINDER KUMAR, DOB 23-12-1965,MY PAN...
i need my personal track statement sagar kupekar
Please send my full loan account numnber
i need my personal loan track statement
personal loan status of agreement number...
SIR/MADAM MY SELF PRIYA SHARMA PAN CARD FFTPS3791P...

NEWS THIS WEEK
LVB bank joined hands with NCML Feb 18, 2015
Syndicate Bank hiring 5000 new staff Feb 12, 2015
SBI donated Rs 8.6 cr as a part of CSR activity Feb 11, 2015
Canara Bank tied up with NHBC Feb 9, 2015
Hiring for Probationary clerks in South Indian Bank Feb 5, 2015
News Archive