The Supreme Court on Wednesday stayed a Madras High Court order that asked the Reserve Bank of India to conduct a fresh valuation of shares and assets of Lakshmi Vilas Bank and DBS Bank India in their 2020 merger case.
The Madras High Court had asked the central bank to conduct a fresh valuation of the assets and shares of both LVB and DBIL to determine any reduction in the value of shares and to reconsider tier-2 bond write-offs. The CJI-led bench also issued notice to Aum Capital and others.
Without staying the amalgamation scheme, the HC had directed “RBI to carry out the exercise of valuing the shares and assets of both DBIL and LVB as on the date before the amalgamation and on that basis, take a decision afresh on (a) reduction of the value of shares and (b) writing off the Tier – II Bonds, within four months.
The HC had directed that the same would be done keeping in mind the grievances of the shareholders and the bondholders and the hardship faced on account of the scheme of compulsory amalgamation and amelioration of the same to the extent possible.
