Madhu Kapur’s family withdraws lawsuit against Yes Bank

Days after agreeing to relinquish the classification of Yes Bank promoters, Madhu Kapur and her family have withdrawn a lawsuit filed against the bank at the Bombay High Court.

The suit filed in 2013 sought recognition of the plaintiffs’ rights to participate in the management of the bank, and restraining of individual directors from acting as such or holding themselves out as directors of the bank.

“The plaintiffs have now withdrawn the suit filed against the defendants, which has been allowed by the Bombay High Court vide an order dated June 9, 2020,” the bank said in a regulatory filing.

Madhu Kapur, the wife of late Yes Bank co-founder Ashok Kapur, and her family members had also asked the court to not allow the bank from making or continuing with any application to any regulator or authorities for reclassifying their shareholding into a non-promoter shareholding.

On May 30, however, the bank had informed the stock exchanges that Madhu Kapur and her family members, Shagun Kapur Gogia and Gaurav Ashok Kapur, along with a Madhu Kapur group entity, Mags Finvest Pvt Ltd, had consented to reclassify their shareholding in the bank as ‘non-promoter shareholders’.

The development comes around three months after the Reserve Bank of India superseded the bank’s board and a State Bank of India-led equity consortium bailed out the lender with capital infusion of Rs 10,000 crore.

Post the investment, SBI has the highest shareholding of 49 per cent in the bank. Former Chief Financial Officer (CFO) of SBI, Prashant Kumar, is the current CEO of Yes Bank.

Rana Kapoor, the other promoter and former CEO of Yes Bank, is currently under the scanner of the Enforcement Directorate.

Shares of Yes Bank rose on Wednesday on the back of the announcement. At 2.20 p.m., its share price on the BSE was Rs 30.50, higher by 2.01 per cent from its previous close.