‘Police cannot prevent the transfer of shares’, SC remains UP Police notice to Yes Bank

New Delhi, Nov 30, : The Supreme Court stayed Tuesdays Uttar Police Notice preventing Yes Bank from transferring or exercising voting rights on Dish TV sharesJustice D.

Y.headed the bench.Justice D.Y.Chandrachud was the head of the bench.He asked Chandrachud how can the police prevent someone from transferring shares, and not allow them to exercise voting rights? Justice Chandrachud stated, "This will allow for a lawless state in affairs .,"." The bench also included Justices A.S.Bopanna, Vikram Nath and halted the operation of the notice by the police to Yes Bank and any further action based upon the FIR.The police had sent the notice on November 5th to Yes Bank.Abhishek Singhvi, senior advocate representing Yes Bank, stated before the bench that the notices issued by police to suspend bank rights was a bizarre act and was called misuse of criminal law.Subhash Chandras senior advocate Kapil Sibal said that these are tainted securities and that the loan (in excess Rs 5,000 crores) was not genuine.He also stated that Yes Bank invoking Dish TV shares was invalid.

Sibal argued why a bank should take over a company and claimed that Yes Bank was trying acquire Dish TV for another person.Singhvi stated that the police action was nepotism at its best.

After hearing the arguments, the bench ruled that prima facie rights of Yes Bank must be protected and stated that police officers cannot be granted such power.The police had registered an FIR, effectively freezing Yes Banks rights to pledged shares.After the promoters failed repay their debt, Yes Bank purchased 24.5 percent stake in Dish TV and banks invoked the pledged shares.Subhash Chandra, founder of Essel Group, filed a complaint against the bank and its former management, led by Rana Kapoor, last September.

They were accused of fraud in brokering a merger transaction between Videocon D2H, and Dish TV India.The police are investigating the matter.

After Chandras FIR was dismissed by the Allahabad High Court, Yes Bank moved to the top court.The Gautam Buddha Nagar Police and the crime branch have taken the decision to freeze the voting rights for the Yes Bank stake in Dish TV India.ss/dpb #transfer #remains #Bank #Delhi.