New Delhi: The Delhi High Court has sought response from DBS Bank India Ltd (DBSIL) on a plea by Religare Finvest Ltd seeking to make the bank a party in its ongoing suit against Lakshmi Vilas Bank as it has been merged with DBSIL. Religare Finvest Ltd (RFL) has a 2018 pending suit against LVB alleging misappropriation of its fixed deposits of Rs 750 crore. The merger of LVB with DBSIL came into effect from November 27. Justice Rajiv Shakdher issued notice to DBSIL on the RFL application seeking to substitute the bank with LVB following the merger. The high court, in its December 1 order, said that the reply be filed to the application within five weeks and listed the matter for further hearing on February 25, 2021. In view of these recent developments it has now become imperative that LVB, that is, the transferor bank as per the scheme and the present defendant be substituted by the transferee bank, that is, DBS and the amended memo of parties be taken on record, the plea said. In the main suit, RFL has sought a declaration that LVBs liquidation of lien-free and unencumbered fixed deposits held by Religare aggregating to Rs 791.44 crore, including interest, is illegal and prayed for recovery of the amount. It is the case of Religare Finvest that since no security or encumbrance was created in respect of the FDs, closure of such FDs to liquidate loans availed by third parties -- RHC Holdings Pvt Ltd and Ranchem Pvt Ltd -- is illegal and void. A criminal case has also been lodged by Delhi Polices Economic Offence Wing in which it was alleged that Shivinder Mohan Singh and his brother Malvinder Mohan Singh in connivance with the employees of LVB misappropriated two Fixed Deposits (FD) of Rs 400 crore and Rs 350 crore made with the bank by the complainant company Religare Finvest. The police had said a probe was initiated after Manpreet Singh Suri of Religare Finvest had filed a complaint against the Singh brothers and their companies RHC Holding Pvt Ltd, Ranchem Pvt Ltd, and LVB and its then directors/employees.

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