Mumbai — The Reserve Bank of India has imposed a monetary penalty of Rs 27.30 lakh on Asset Care & Reconstruction Enterprise Limited for failing to comply with regulatory requirements related to the charging of management fees.
The central bank said the penalty was imposed through an order dated September 8, 2026, following a statutory inspection of the asset reconstruction company based on its financial position as of March 31, 2025.
“RBI has imposed a monetary penalty of Rs 27.30 lakh on Asset Care & Reconstruction Enterprise Limited for non-compliance with certain provisions of the directions issued by RBI on income recognition,” the central bank said.
“This penalty has been imposed in exercise of powers conferred on RBI under the provisions of section 12 read with section 30A(1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002,” it added.
The RBI said its supervisory examination found that ACRE had not complied with regulatory directions related to income recognition. The regulator then issued a show-cause notice seeking an explanation from the company.
After reviewing ACRE’s response, subsequent submissions and representations made during a personal hearing, the RBI concluded that the charge related to management fees was established.
The penalty was imposed under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
The RBI said the action was based on deficiencies in regulatory compliance and should not be interpreted as a determination on the validity of any transaction or agreement between ACRE and its customers.
The central bank also said the penalty does not prevent it from taking further action against the company if warranted. (Source: IANS)
