Bombay HC refuses to stay merger of Lakshmi Vilas Bank, DBS
Mumbai, Nov 26: The Bombay High Court on Thursday refused to stay Lakshmi Vilas Bank's (LVB) merger with DBS Bank India Ltd which will be effective from November 27.
A division bench of Justices Nitin Jamdar and Milind Jadhav was hearing petitions filed by a group of promoters of the ailing Lakshmi Vilas Bank and Indiabulls Housing Finance Ltd, one of its shareholders, challenging the merger.
"We are refusing the interim relief sought by the petitioners to stay the amalgamation. The petitions shall be placed for hearing on December 14 when the respondents (Reserve Bank of India, LVB and DBS Bank India) shall file their affidavits in reply," the court said.
On Wednesday, the Union Cabinet gave approval to the Scheme of Amalgamation of Lakshmi Vilas Bank with DBS Bank India Ltd to protect the interests of LVB's depositors and employees.
As per the Scheme of Amalgamation, the entire paid-up share capital of LVB will be written off, resulting in shareholders losing their investment.
The petitioners challenged this part of the scheme and sought an interim stay to the amalgamation.
The court, however, said the petitions pertain to a monetary claim, and it needs to be heard and decided finally.
"Indiabulls is a shareholder of the Lakshmi Vilas Bank and stands to lose Rs 188 crore due to this amalgamation," the company's counsel Dinyar Madon said.
Senior counsel Ravi Kadam, appearing for the RBI, opposed the pleas and said the amalgamation decision was taken in larger public interest and in the interest of the depositors and employees of the Lakshmi Vilas Bank.
"There are 20 lakh accounts in LVB. An emergent situation arose which prompted the RBI to step in and take action. The entire liability of LVB is now the liability of a more solid bank (DBS)," Kadam said.
DBS India Ltd's lawyer, senior counsel Janak Dwarkadas argued that LVB's condition was deteriorating since March 2019 and the RBI had to take prompt corrective action.
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Surat LS candidate Nilesh Kumbhani whose nomination form was rejected suspended from Congress
Ahmedabad, Apr 25: The Gujarat Congress on Friday suspended from the party for six years its Surat Lok Sabha candidate Nilesh Kumbhani, whose nomination form was rejected over discrepancies leading to the BJP's Mukesh Dalal getting elected unopposed.
A statement from the Congress said the party's disciplinary committee decided to suspend Kumbhani after thorough discussion, adding it had come to the conclusion that the nomination form was rejected due to gross negligence on his part or "in connivance with the BJP".
"To be fair to you we have given time to you to explain your case but instead of coming before the party disciplinary committee you have gone incommunicado. After your form was rejected by the authorities, BJP went ahead and got form of other eight candidates withdrawn. This has deprived people of Surat their voting rights," the Congress disciplinary committee headed by Balu Patel said.
"People of Surat and party workers have become very angry due to your action and are expressing their anger in different ways. The Congress party has decided to suspend you for six years from the party," the press note said.
Kumbhani's nomination form was rejected on April 21 after his three proposers submitted affidavits to the district returning officer claiming the signatures on the document was not theirs.
The nomination form of Suresh Padsala, the Congress' substitute candidate from Surat, was also invalidated on the same grounds.
In his order, Returning Officer Sourabh Pardhi said the three nomination forms submitted by Kumbhani and Padsala were rejected after prima facie discrepancy was found in the signatures of the proposers and they did not appear to be genuine.
Kumbhani, a former corporator from Surat, had unsuccessfully fought the 2022 Assembly polls from Kamrej there.
The Bharatiya Janata Party's Mukesh Dalal was elected unopposed from Surat Lok Sabha constituency on April 22 after all other nominees, including one from BSP, withdrew from the fray one by one on the last day of withdrawing papers.
