Whalesbook
Court Demands AT-1 Bond Decision Documents
The Supreme Court is intensifying its review of the Finance Ministry's handling of the Rs 8,415 crore Yes Bank additional tier-1 (AT-1) bond write-off. Justice Dipankar Datta has instructed Solicitor General Tushar Mehta to submit the Cabinet resolution, meeting minutes, and all supporting documents from the 2023 decision.
Scrutiny of Cabinet Meeting Procedures
Mehta has been given a deadline of 3 PM the same day to present the Cabinet decision minutes. The court's request includes a comprehensive disclosure of the Cabinet meeting rules, quorum details, and the names of members present during the crucial decision. Justice Datta stressed the court's need to be satisfied about the legitimacy of the Cabinet meeting and cautioned Mehta to advise his client carefully, suggesting the court might issue its own directive if it remains unconvinced.
Challenge to Bombay High Court Ruling
These Supreme Court proceedings arise from an appeal by Yes Bank, the Reserve Bank of India (RBI), and the Finance Ministry. They are challenging a January 2023 order from the Bombay High Court. The high court had previously overturned the RBI and Yes Bank's decision to write off the AT-1 bonds. These bonds, valued at Rs 8,415 crore, were held by various investors, including mutual funds, financial institutions, and retail investors. Many bondholders, especially retail investors, had sought redressal from the high court after the write-off, a request that the court had initially granted.