Paisalo clears air, says 'no order to probe any unfair lending practices by HC'

Paisalo Digital has clarified on the Delhi High Court directive over the NBFC's lending practices.
In a statement on Tuesday, Santanu Agarwal, deputy MD, Paisalo Digital, said "there is no specific order from the Hon'ble High Court directing any regulator to investigate any unfair lending practices".

Agarwal said the matter pertains to Sat Priya Mehamia Memorial Educational Trust, Rohtak, involving a borrowed amount of Rs 12 crore on March 24, 2018, that prompted the NBFC to take legal action against the defaulter and its office bearers involved in selling off the 'land mortgaged to us'. 

"Despite our efforts and the Hon’ble High Court of Delhi's order dated 25th January 2024 directing the maintenance of the status-quo as to the title and possession of the mortgaged properties, the defaulter and its office bearers continue to violate these orders by illegally disposing of the mortgaged properties. The company treated this as a loss asset in September 2019 in its books of accounts by providing 100%," Agarwal said.

"In response to the default, we have initiated various legal actions, including registering an FIR against the defaulting entity. It is important to note that the Hon’ble Delhi High Court, in its order, has only directed to 'Issue notice and reply to be submitted in four weeks.’ Paisalo Digital Limited remains committed to upholding the rule of law and will continue to pursue legal remedies to address this matter."

The Delhi High Court had reportedly issued notices to the Reserve Bank of India, the Securities and Exchange Board of India, and Paisalo Digital on the loan row. The petitioner sought an independent inquiry into what they claim are unfair lending practices by the company.