HC admits Madhu Kapur's plaint against Yes Bank board
24 March 2014
The Bombay High Court today admitted a plea by Madhu Kapur, widow of Yes Bank co-founder Ashok Kapur, opposing the nomination of three directors to the lender's board, which is headed by her brother-in-law Rana Kapoor. This rekindles a five-year-old family feud.
The Bombay High Court on Monday admitted Madhu Kapur's petition challenging the nomination of three directors to the board of Yes Bank despite the bank's argument that the plea was not maintainable and did not fall under the court's jurisdiction. The three directors - Arun Diwan Nanda, MR Srinivasan and Ravish Chopra - were nominated by Rana Kapur, MD and CEO of Yes Bank.
Madhu Kapur had, last year, filed a plea in the high court against the nomination of the three directors and has sought participatory rights in the process of nominating directors on the bank's board. The high court had then refused to intervene in the nomination process, saying it was out of its purview.
Maddhu Kapur is the widow of Yes Bank co-founder Ashok Kapur who passed away in the 26/11 terror attacks, and the sister of Bindu Kapoor, the wife of the Rana Kapoor. Ashok Kapur and Rana Kapoor (who holds 13.72 per cent stake) co-founded Yes Bank in 2004.
Earlier in 2009, Madhu Kapur, who holds 11.71 per cent in Yes Bank, had also sought the nomination of her daughter Shagun Gogia to the bank's board, but the board rejected the request on the grounds that the nomination may not pass the ''fit and proper'' criterion laid down by the Reserve Bank of India.
The plea, however, has only been accepted on the grounds of maintainability and the court will hear the legal merits of the case later.
Yes Bank says the nominations to its board were in compliance with Banking Regulations Act and cannot be challenged in a court of law.