Singapore based DBS face lawsuits in India after takeover of Lakshmi Vilas Bank
Singapore-based DBS Group Holdings said it was facing lawsuits in India over its takeover of Lakshmi Vilas Bank.
DBS said holders of LVB's equity shares and Tier-II bonds that were written off before the date of merger initiated legal actions against DBS's local unit in various high courts in India.
The amalgamation of LVB and the Indian unit of DBS was completed on November 27, 2020 after approval from the Reserve Bank of India (RBI).
"Other legal liabilities in the normal course of business have also been suitably provided for," the lender said.
There are currently five petitions challenging the merger in four high courts - Madras, Bombay, Karnataka and Delhi. In January, a plea was filed in the Delhi High Court (HC), challenging the scheme of amalgamation of the two entities.
The petition alleged that LVB's shareholders have been "left in the lurch" and that the Centre and the RBI have failed to protect their interests. The RBI has moved a plea in the Supreme Court to transfer all cases to the Bombay HC.