Mumbai News

Kapur family withdraws suit against Yes Bank in Bombay high court – Livemint

Private sector lender Yes Bank on Tuesday said that Madhu Kapur and other family members have withdrawn their petition from the Bombay high court after having fought it since 2013.

The families of the founders of Yes Bank—Ashok Kapur, who died in the November 2008 terrorist attack on Mumbai, and Rana Kapoor—were locked in a dispute over the nomination of people to the board of the bank. Kapoor’s wife Bindu and Madhu Kapur are sisters. Madhu Kapur, along with her daughter Shagun Gogia and son Gaurav Kapur, had filed a petition in the Bombay high court seeking three broad categories of reliefs.

The first relief sought was their rights to participate in the management of the bank. The second relief sought was to restrain individual directors from acting as such or holding themselves out as directors of the bank; and the last one was to restrain the bank from making or continuing any application to any regulator for reclassifying the Kapur family’s shareholding into the non-promoter category.

On 30 May, Yes Bank told the stock exchanges that Madhu Kapur, Shagun Kapur Gogia, Gaurav Kapur and Mags Finvest Pvt Ltd. (a Madhu Kapur group entity) – decided to give up their status as Yes Bank promoters. Yes Bank said that in a 28 May letter Madhu Kapur (who holds 1.12%), Gogia, Gaurav Kapur and Mags Finvest (which holds 0.30%) have given their consent to reclassify their shareholding in Yes Bank as ordinary public shareholders.

Meanwhile, on 13 March, the government had approved a rescue plan for Yes Bank backed by SBI. Under the plan, domestic investors including SBI, Housing Development Finance Corp, ICICI Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank and IDFC First bank invested 10,000 crore into Yes Bank.

This rescue plan led to appointment of new board of directors and deletion of certain articles from the Articles of Association (AoA) of the bank which conferred certain management participative rights on the promoters.

“The plaintiffs have now withdrawn the suit filed against the defendants, which has been allowed by Bombay high court vide order dated 9 June, 2020,” the bank said in a regulatory filing on Tuesday.

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