https://www.taxtmi.com/caselaws?id=377592 A scheme of amalgamation could not proceed without Reserve Bank of India approval where the transferor companies' financial profile showed NBFC characteristics. The materials indicated investment, lending and advances activities, with substantial investments and little or no operational income in some entities; on that basis, the companies failed to dislodge the finding that their principal business was financial in nature. Applying the RBI test that financial assets and related income exceeding 50% of total assets and gross income point to NBFC status, the tribunal treated prior regulatory compliance as necessary. The rejection of the scheme was therefore upheld and the appeal failed. en-us Thu, 17 Jan 2019 00:00:00 +0530 Mon, 01 Apr 2019 09:34:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=377592 A scheme of amalgamation could not proceed without Reserve Bank of India approval where the transferor companies' financial profile showed NBFC characteristics. The materials indicated investment, lending and advances activities, with substantial investments and little or no operational income in some entities; on that basis, the companies failed to dislodge the finding that their principal business was financial in nature. Applying the RBI test that financial assets and related income exceeding 50% of total assets and gross income point to NBFC status, the tribunal treated prior regulatory compliance as necessary. The rejection of the scheme was therefore upheld and the appeal failed. Case-Laws Companies Law Thu, 17 Jan 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=377592