SC protects Yes Bank in FIR related to share transfers in Dish TV

Yes Bank acquired 24.5% stake in Dish TV after the promoters failed to repay their debt and banks invoked the pledged shares

The Supreme Court Wednesday extended protection granted to Yes Bank in an FIR lodged by the Uttar Pradesh's Noida Police and a restraint order from transferring and exercising voting rights in Dish TV on the basis of 44.53 crores shares pledged on disbursal of Rs 5,270 crore loan in 2016-18 to Essel group and its sister concerns.

A bench presided over by Chief Justice D Y Chandrachud said the court had granted protection in November 2021 to the petitioner which can continue.

After hearing senior advocate A M Singhvi on behalf of the petitioner, the bench restored the application filed under Section 482 of the Criminal Procedure Code before the High Court.

"Let the High Court take a call," the bench said.

The appeal arose from an order issued on November 25, 2021 by a single judge of Allahabad HC. The HC has declined to entertain the plea to quash the FIR registered in September 2020.

The police had sent the notice to Yes Bank, directing the bank not to transfer the 44.53 crores shares or to exercise rights in respect of the shares till completion of investigation by the Crime Branch or further orders.

Yes Bank acquired 24.5 per cent stake in Dish TV after the promoters failed to repay their debt and banks invoked the pledged shares.

Subhash Chandra, the founder of Essel group, filed a police complaint against the bank and its former management led by Rana Kapoor accusing them of fraud while brokering a merger transaction between Videocon D2H and Dish TV India.

Yes Bank approached the top court after the Allahabad High Court on November 25 dismissed its plea seeking quashing of the FIR filed by Chandra.