Religare Enterprises today said its subsidiary Religare Finvest never created any security over its deposits of Rs 794 crore with Lakshmi Vilas Bank, which the lender has held against loan defaults by third parties RHC Holding and Ranchem Pvt Ltd.
The disclosure made by Lakshmi Vilas Bank (LVB) referred the deposits amounting to Rs 794 crore placed by Religare Finvest (RFL), a subsidiary of Religare Enterprises (REL), is "factually incorrect" in relation to the statement made by the bank that the "said deposits relates to Religare Finvest and the same were held as security for the loans extended to RHC Holding Pvt Ltd and Ranchem Pvt Ltd", Religare Enterprises said in a regulatory filing today.
Yesterday, LVB had said the adjustment of Rs 794 crore deposits of Religare Finvest, held as security for loans taken by other two firms, is legal and it is fighting a case in the court appropriately.
RFL further clarified that it never created any security over the deposits which have been alleged to have held as security by LVB.
"Neither REL nor RFL are parties to any loan or other arrangements vis-a-vis LVB and RHC Holding and Ranchem in relation to any loans being suggested by LVB," it said in the filing.
Religare Enterprises has filed a suit for recovery of the amount before the Delhi High Court in order to seek orders requiring the lender to repay the amount of the deposits, along with interest to RFL.
"Additionally, based on an application filed by RFL, the High Court of Delhi by its order dated May 31, 2018, granted ad-interim injunction against LVB, whereby LVB was restrained from debiting any sums from RFL's current account held with LVB.
"It is also clarified that that RFL has informed SEBI and RBI of the illegal actions of LVB vis-a-vis the deposits of RFL," REL further said.
However, the bank yesterday said that it has received legal opinion in the matter suggesting that adjustments of deposits against loans are "lawful".
While, Ranchem Pvt Ltd is a subsidiary of RHC Holding Pvt Ltd.
Shares of Religare Enterprises closed 0.86 per cent lower at Rs 52.10 on BSE.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)