1. Key Details
The Reserve Bank of India (RBI) has restored the Certificate of Registration (CoR) of Social Leasing India Limited via a press release dated January 07, 2026. This action follows orders passed by the Appellate Authority/Courts, effectively allowing the entity to resume operations as a Non-Banking Financial Company (NBFC).
| Parameter | Details |
|---|---|
| Company Name | Social Leasing India Limited |
| Registration No. (CoR) | B-14.01465 |
| Registered Office |
Wing 1(B), Ground Floor, Social Polygon Tower, Near Radha Swami Satsang Bhawan, Haridwar Bypass Road, Brahmanwala, Dehradun City, Uttarakhand – 248001 |
| Restoration Date | December 22, 2025 |
| Authority Ref. | Press Release: 2025-2026/1874 |
2. Root Cause Analysis (RCA)
The restoration is explicitly linked to “orders passed by the Appellate Authority/Courts.” While the specific cancellation order is historical, the restoration trajectory highlights the following likely root causes for the initial regulatory friction:
Primary Trigger: Section 45-IA(6) Enforcement
Issue: The initial cancellation likely stemmed from Section 45-IA(6) of the RBI Act, 1934. This section empowers RBI to cancel CoR for failure to maintain Net Owned Funds (NOF), failure to repay deposits, or ceasing to carry on business.
Remedy: The company successfully demonstrated to the Appellate Authority (e.g., MOF or High Court) that it either met the criteria or that the cancellation process lacked procedural fairness.
Legal Entity Distinction
Issue: Historical litigation records (e.g., Social Leasing (India) Ltd. v. Rajan Kumar Kanthwal) indicate potential confusion between “Social Leasing India Ltd” and other entities like “Social Finance Company” (which faced earlier bans).
Remedy: The restoration implies the company successfully established its distinct legal identity and operational compliance separate from other defunct or non-compliant entities.
3. Preventive Controls & Compliance Framework
To prevent recurrence of regulatory censure, the following controls are mandatory post-restoration:
-
Strict NOF Monitoring:
Ensure Net Owned Fund (NOF) never dips below the statutory minimum (₹200 Lakhs for new NBFCs / as applicable for legacy entities). Quarterly certification by auditors is recommended. -
Digital Reporting Hygiene:
Adhere strictly to XBRL return filing timelines. Non-filing is a primary trigger for “Ceased to Carry on Business” classification. -
Litigation Management System:
Maintain a centralized dashboard of all legal matters (Sec 138 NI Act, Recovery Suits) to ensure no adverse court observations regarding “Banned Entity” status go unchallenged.
4. Lessons Learnt
1. The Power of Appellate Recourse:
Regulatory orders are not always final. This case demonstrates that maintaining robust documentation allows an NBFC to successfully challenge cancellation orders in High Courts or Appellate Tribunals if compliance can be proven.
2. Continuity of Compliance:
The Press Release explicitly advises the NBFC to “adhere to applicable provisions… including reporting requirements.” This signals that restoration is conditional on immediate and sustained compliance. A “restored” NBFC is often under higher scrutiny than a standard one.