{"id":231439,"date":"2020-06-26T16:24:28","date_gmt":"2020-06-26T10:54:28","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=231439"},"modified":"2020-07-03T15:59:50","modified_gmt":"2020-07-03T10:29:50","slug":"del-hc-how-are-depositors-of-yes-bank-differently-circumstanced-from-depositors-of-pmc-bank-rbi-and-centre-to-file-affidavits-in-plea-seeking-securing-pmc-bank-depositors-interest","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/06\/26\/del-hc-how-are-depositors-of-yes-bank-differently-circumstanced-from-depositors-of-pmc-bank-rbi-and-centre-to-file-affidavits-in-plea-seeking-securing-pmc-bank-depositors-interest\/","title":{"rendered":"Del HC | &#8220;How are depositors of Yes Bank differently circumstanced from depositors of PMC Bank&#8221;: RBI and Centre to file affidavits in plea seeking to secure PMC Bank depositors&#8217; interest"},"content":{"rendered":"<div class=\"gmail_quote\" dir=\"auto\">\n<div dir=\"ltr\">\n<p style=\"text-align: justify;\"><strong>Delhi\u00a0High Court:\u00a0<\/strong>Rajiv Shakdher, J., directed the Union of India and RBI to submit affidavits stating what propelled RBI to take action in public interest to secure interest of depositors of Yes Bank and how are depositors of PMC Bank different circumstanced from depositors of Yes Bank.<\/p>\n<\/div>\n<div dir=\"ltr\" style=\"text-align: justify;\">\n<p>In the present matter, pursuant to a query raised by the Court in its order dated 18th May 2020, the Union of India has filed an affidavit wherein it has stated that no funds have been invested by them in Yes Bank. It was however averred that the State Bank of India had invested in the share capital of Yes Bank, upon sanction being accorded by it to the Yes Bank Limited Reconstruction Scheme, 2020 as alluded to in the notification dated 13th March, 2020 &#8212; G.S.R. 174(E).<\/p>\n<\/div>\n<\/div>\n<div class=\"gmail_quote\" dir=\"auto\">\n<div dir=\"ltr\">\n<p style=\"text-align: justify;\">However, as per the Court, what emerged upon perusal of the notification was that both the Reserve Bank of India as well as UOI had a crucial role to play in the decision taken to permit the Reconstruction Scheme and funding the same.<\/p>\n<p style=\"text-align: justify;\">On noting the above-stated circumstances, the High Court directed that\u00a0<strong>RBI will file an affidavit as to what propelled it to take action in the&#8221;public interest&#8221; to secure the interest of the depositors of Yes Bank and the reason why Union of India accorded sanction to the reconstruction Scheme mentioned above.<\/strong><\/p>\n<p style=\"text-align: justify;\">Additional affidavits to be filed by both RBI and UOI will establish the reasons that propelled the forging of the Reconstruction Scheme.<\/p>\n<p style=\"text-align: justify;\">&#8220;Affidavits to delve into the aspect as to how the depositors of PMC Bank are differently circumstanced in comparison to the depositors of Yes Bank.&#8221;<\/p>\n<p style=\"text-align: justify;\">UOI&#8217;s affidavit to also indicate as to the shares it holds in SBI and the representation it has on the SBI&#8217;s Board of Directors.<\/p>\n<p style=\"text-align: justify;\">Court after stating the above asked the affidavits to be filed within 3 weeks.<\/p>\n<p style=\"text-align: justify;\">Counsel who appeared on behalf of the Administrator conceded that up until now one of the assets of PMC Bank which have been seized have been liquidated.<\/p>\n<p><span style=\"font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif; text-align: justify;\">Court with regard to the PMC bank aspect stated that,<\/span><\/p>\n<\/div>\n<\/div>\n<div class=\"page\" title=\"Page 3\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<blockquote>\n<p style=\"text-align: justify;\">Given the dire state in which the depositors of PMC Bank are placed today, the Administrator, to my mind, should approach the Court concerned and make an endeavour to hasten the process.<\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">Thus, administrator has also been directed to revert on the above matter by filing an additional affidavit.<\/p>\n<p style=\"text-align: justify;\">Matter to be re-notified on 6-08-2020. [Sandeep Bhalla v. RBI, <b><a href=\"http:\/\/www.scconline.com\/DocumentLink\/g2N56s3B\">2020 SCC OnLine Del 671<\/a>,<\/b> <span style=\"font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif;\">decided on 25-06-2020]<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Delhi\u00a0High Court:\u00a0Rajiv Shakdher, J., directed the Union of India and RBI to submit affidavits stating what propelled RBI to take action in <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[39143,42176,10971,42175,42174],"class_list":["post-231439","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-highcourts","tag-pmc-bank","tag-reconstruction-scheme","tag-sbi","tag-union-of-india","tag-yes-bank"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Del HC | &quot;How are depositors of Yes Bank differently circumstanced from depositors of PMC Bank&quot;: RBI and Centre to file affidavits in plea seeking to secure PMC Bank depositors&#039; 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