The Interim Resolution Professional (IRP) appointed by lead lender Canara Bank disallowed Srei to be part of the CoC. Canara Bank was of the view that Srei with over 24% equity stake in DCHL may not be impartial in its voting as they are part-owners of the company. Canara Bank said that "representatives of Srei were inducted into DCHL but the fact remains that Srei is a related party due to its shareholding in the company. The court ruled that Srei Infrastructure holds 24.5% shares in DCHL and that the mode of having the voting rights is immaterial and the leading creditor in this case Canara Bank should be given the rights to decide on the voting rights as it will cause maximum damage to the bank if there are any prejudices in the voting. THE SREI CASE

Source: dna November 24, 2017 01:41 UTC