Delhi cops file case against LVB on Reli­gare com­plaint

The Times of India (New Delhi edition) - - Times Global - TIMES NEWS NET­WORK

Chennai: The Eco­nomic Of­fences Wing (EOW) of the Delhi Po­lice has reg­is­tered a first in­for­ma­tion re­port (FIR) against the board of di­rec­tors of pri­vate sec­tor lender Lak­shmi Vi­las Bank (LVB) on charges of cheat­ing, crim­i­nal breach of trust and crim­i­nal con­spir­acy. A com­plaint was filed by Reli­gare Fin­vest.

LVB had claimed ad­just­ment of a fixed de­posit of Rs 750 crore plus in­ter­est amount­ing to Rs 791crore, de­posited by Reli­gare Fin­vest in 2016 and early 2017, to­wards the de­fault on a loan made by RHC Hold­ing and Ranchem — the com­pa­nies be­long­ing to the pro­mot­ers of Reli­gare. While the bank main­tained that it acted in ac­cor­dance with the rel­e­vant pro­vi­sions of law, Reli­gare has con­tested this. The FIR was filed by Man­preet Singh Suri, se­nior man­ager (le­gal) with Reli­gare Fin­vest on Septem­ber 23.

“The bank is con­sid­er­ing ap­pro­pri­ate le­gal mea­sures to counter the same,” LVB said.

LVB and In­di­a­b­ulls Hous­ing had an­nounced a merger in April. Since then, the stock prices of both have crashed, partly be­cause of a mar­ket melt­down and also due to al­le­ga­tions about qual­ity of In­di­a­b­ulls’ books. Com­pe­ti­tion watch­dog CCI has cleared the merger. All eyes are on RBI, which is yet to give its nod.

The lat­est move by the Delhi EOW comes just be­fore the share­hold­ers of LVB will meet on Fri­day at Karur. The meet­ing is ex­pected to see share­hold­ers raise ques­tions about the pro­posed merger.

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