Whereas –

1. In exercise of the powers conferred on it under section 29(5) of the National Housing Bank Act, 1987,  National Housing Bank (NHB) on March 31, 2003 granted Certificate of Registration  to Lokseva Housing (Aurangabad) Finance Ltd. having its Registered Office at Building  No.2, Apna Bazar, S.F.S. Compound, Jalna Road, Aurangabad  (hereinafter referred to as the Company) subject to  certain terms and conditions including that the Company shall continue to comply with the provisions of the said Act and  all the Directions, Guidelines and instructions issued by NHB from time to time; 
2. NHB, in exercise of its powers conferred under section 29B of the said Act, vide notification dated May 1, 2007 published in the Gazette of India dated May 19, 2009 specified minimum net owned fund to be Rupees Two (2) Crore for existing Housing Finance Companies which they were required to achieve on or before March 31, 2008;
3. The Company, vide its letter dated May 26, 2008 requested for time upto March 31, 2009  and vide its letter dated January 2, 2009 indicated the plan to induct additional capital by Rs.45 lakhs every months starting from January 2009 till March 2009;
4. On enquiry by NHB vide its letter dated February 18, 2009 about the induction of the capital during the month of January, the Company informed that due to heavy recession, it could not raise NOF as per plan and requested for time upto March 31, 2010;
5. NHB issued a show cause notice dated March 25, 2009 seeking its explanation as to why the Certificate of Registration granted to the Company be not cancelled  while conveying that  time upto March 31, 2010 cannot be granted;
6. The Company vide its letter dated April, 03, 2009 again reiterated its request seeking time to achieve the required level of NOF by March 31, 2010;
7. The reply by the company is wholly unsatisfactory. The level of  NOF which was to be achieved by March 31, 2008 has not been achieved till date. The Company is not serious in observing the direction issued by NHB and no steps have been taken to increase the net owned funds. 

Now, therefore, in exercise of the powers conferred under sub-section (5) of Section 29 of the National Housing Bank Act, 1987, the National Housing Bank hereby cancels the Certificate of Registration granted to Lokseva Housing (Aurangabad) Finance Ltd. having its Registered Office at Building  No.2, Apna Bazar, S.F.S. Compound, Jalna Road, Aurangabad.

The company shall surrender the Certificate of Registration to NHB  and  stop the business of housing finance forthwith. This order, however, shall not prevent the company from recovering its loans/installment of loans from the borrower. This order comes into force with immediate effect.

The Company may be advised accordingly.

Sd/-

(R.V.Verma)

Executive Director