 "Karvy case: ICICI Bank to challenge Telangana HC stay on DRT proceedings")
ICICI Bank is planning to challenge the order of the High Court (HC) of Telangana that stayed a plea of the lender, which it filed in the debt recovery tribunal (DRT) against Karvy Stock Broking.
The high court had stayed the plea of the bank that immoveable and moveable properties of Karvy Stock Broking and other respondents be taken under possession. According to the bank, it is in the process of challenging the HC’s stay on this direction.
ICICI Bank in a statement said the DRT proceedings have not been completely put on stay. “The DRT orders requiring the defendants to deposit sufficient security and imposing a non-disposal injunction on the properties have been upheld by the HC, and continue to be binding on the defendants,” the statement said.
Among other prayers that still stay operational, ICICI Bank had sought recovery of Rs 629 crore. The DRT in its order dated December 9, 2019, had directed Karvy Stock Broking to deposit Rs 629 crore before the tribunal within 15 days of the receipt of the order, failing which the “petition schedule properties shall be attached”.
However, in a statement, Karvy denied any part of ICICI Bank’s plea is operational.
“The order dated December 9, 2019, has been stayed by the HC, which includes attachment of properties and deposit of security amount. Since the said order has been stayed, nothing in that remains operational,” said Karvy.
Also, Axis Bank has moved DRT against Karvy Stock Broking.
As on December 7, 2019, Karvy Stock Broking owed Rs 81 crore to Axis Bank, which was given in the form of overdraft against shares.
Lenders are approaching the DRT after they didn’t get any relief from the Securities Appellate Tribunal (SAT).
Earlier, ICICI Bank, along with HDFC Bank, Axis Bank, and IndusInd Bank, had moved SAT to seek relief after the National Securities Depository restored client securities that Karvy had pledged with lenders back to the affected clients.
The lenders cumulatively have lent close to Rs 1,000 crore to Karvy.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%