Home / News / India /  HC issues DBS notice over plea by Religare

Religare Finvest Ltd, which has a pending case against Lakshmi Vilas Bank for misappropriating fixed deposits worth 750 crore, on Thursday sought directions from Delhi High Court to substitute the defendant Lakshmi Vilas Bank Limited (LVB) with DBS Bank India Ltd (DBSIL) in the ongoing suit, on the ground of the mergers of the two banks.

The amount has swelled to 900 crores along with the interest, Religare said in its application.

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The high court bench headed by Justice Rajiv Shakdher has directed the DBSIL to file a response within five weeks. The case will be heard next on 25 February.

Asserting on the recent developments where the two banks have merged and the liabilities transferred as per the provisions of the amalgamation scheme, Religare urged the high court to substitute LVB with DBS as defendant in the pending suit related to misappropriation of funds.

The application filed by Religare states that pursuant to the Press Release bearing no. 2020-2021/647 released by Reserve Bank of India (RBI), it has now come to the knowledge of the Petitioner that RBI has announced a scheme of amalgamation of the Defendant, i.e., LVB with DBS which is set to come into force on 27.11.2020, post which LVB will operate as DBS.

The plea further highlighted a clause in the amalgamation scheme stating “that under Clause 3 Sub-clause 3, all the liabilities of LVB, as an appointed date, shall stand transferred to DBS."

The order was made available 3 December on the High court website.

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