Delhi cops file case against LVB on Religare complaint
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.