Subhash Chandra faces mortgage check in Yes Bank fight
In addition to pledging his family’s 25% stake in Dish TV India Ltd to borrow money from Yes Bank, Chandra also pledged his bungalow, spread over 2.8 acres at 4, Bhagwan Das Marg, according to court orders consulted by Mint.
Yes Bank repossesses the property, located near the Supreme Court. Chandra stopped repaying the loan a few years ago.
The case inadvertently came into the spotlight after a Jaipur Debt Collection Tribunal (DRT) prevented Yes Bank from exercising its rights to the shares it held in Dish TV instead of issuing a order in the property case. This prompted Yes Bank to take legal action in Delhi’s high court, which dismissed the DRT’s order while making scathing observations.
“We are completely shocked and dismayed to read the contested order and the manner in which DRT Chairman Jaipur Vivek Saxena proceeded,” said an order, dated December 24, from a bench of two judges of the Vipin Sanghi judges. and Jasmeet Singh. “Either he (Saxena) was unaware of the aforementioned developments – for which the respondents are responsible – or he displayed a complete lack of judicial discipline.”
“It should be noted that the Respondents (Greatway Estates Pvt. Ltd) are neither the owners nor the guarantors of the shares. The securitization request pending before the DRT for examination … relates to the action taken by the applicant (Yes Bank) with a view to the recovery of the mortgaged asset and its liquidation to realize the arrears. We do not understand at all how the respondents could have an interest in the pledged actions, which were not pledged by them, and how the court could have made an interim order regarding the pledged actions, ”said the order.
Chandra has passed ??300 crore in 2015 to purchase the central Delhi bungalow, although its complaint to DRT Jaipur sets its value at ??1,000 crore, according to a separate legal file, reviewed by Mint. Dish TV had a market capitalization of ??3,360 crore as of December 24.
In 2016, Chandra pledged around 25% of her family’s stake in Dish TV, her bungalow in Delhi and two other properties for the ??Loan of 4,210 crore granted by Yes Bank. After Essel Group failed to honor the loan, Yes Bank invoked the shares pledged with it in June of last year and began taking possession of the properties. The promoters of Dish TV held the shares through World Crest Advisors, whose separate appeal filed last week in the Bombay High Court challenging Yes Bank’s ownership of the shares was dismissed. The Bhagwan Das Marg bungalow was owned by another promotion entity, Greatway Estate, which had questioned Yes Bank’s efforts to repossess the property before a DRT in Jaipur.
“In the present case, the arguments on IA 1410/2021 must be heard, and due to the hearing of a number of cases, the hearing is not possible, therefore both parties are invited to plead the case on IA n ° 1410/2021 on 29.12.2021 via VC at 4:00 pm Until then, both parties will maintain the status quo with regard to the exercise of their right to the shares “, said Thursday the order of the DRT in Jaipur.
Yes Bank challenged this DRT order on Friday before the Delhi High Court. “The court was obliged to give reasons before issuing the interim order, thus seriously affecting the rights of the applicant in the present case. They are conspicuous by their absence. We are therefore suspending the execution of the contested order until further notice, “the High Court said.
Yes, Bank and Dish TV are locked in multiple legal battles, as Dish TV runs the risk of seeing all three resolutions, including the passage of the financial accounts, the reappointment of a director, and the cost to the auditor, to be defeated at the company’s annual general meeting on December 30. Indeed, Yes Bank is the main shareholder, holding 25.63%, while the promoters, led by chairman Jawahar Goel, own 5.93% of Dish TV.
Chandra, who is Goel’s older brother, agreed to cede control of Zee Entertainment Enterprises Ltd after a revolt by the major shareholder, Invesco, the US asset management company, prompted him to merge the company with Sony Pictures Networks India Ltd.
On December 21, Sony and Zee signed a definitive company merger agreement, in which Sony will control 51% of the merged entity and retain the right to appoint most of the board members while Chandra will retain its 4%. shares and his eldest son, Punit Goenka, will remain Managing Director for five years.
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