A non banking financial company is required to get itself registered with the RBI before conducting its business. By not doing so, it invites prosecution and heavy penalty. If it does not register itself and disbuses loans to individuals and other private limited companies, can it be said that the loans are not legally enforceable debts. Please remember that any company registered with the Registrar of Companies is under obligation to follow all the laws applicable to it be they Central or State or municipal laws. Can such a company take recourse to law when its action itself is illegal?
