Restriction on end use of borrowed funds prohibits borrowing for specified activities and limits repayment and on lending. Restriction on end use of borrowed funds prohibits borrowing for chit funds, nidhi companies, real estate business and farmhouse construction (subject to infrastructure and industrial park composition conditions), trading in transferrable development rights, most plantation and securities transactions except for corporate actions pursued for strategic long term value; allows limited agricultural and animal husbandry activities under controlled conditions. It also prohibits using borrowed funds to repay domestic INR loans that financed restricted end uses or are NPAs, and forbids on lending for restricted purposes.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Restriction on end use of borrowed funds prohibits borrowing for specified activities and limits repayment and on lending.
Restriction on end use of borrowed funds prohibits borrowing for chit funds, nidhi companies, real estate business and farmhouse construction (subject to infrastructure and industrial park composition conditions), trading in transferrable development rights, most plantation and securities transactions except for corporate actions pursued for strategic long term value; allows limited agricultural and animal husbandry activities under controlled conditions. It also prohibits using borrowed funds to repay domestic INR loans that financed restricted end uses or are NPAs, and forbids on lending for restricted purposes.
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