File personal bond, Delhi HC suggests to Kejriwal

May 27, 2014

New Delhi, May 27: The Delhi High Court today advised Arvind Kejriwal, who has been lodged in Tihar Jail, to furnish a bail bond in the criminal defamation complaint filed against him by BJP leader Nitin Gadkari.kejriwal arrest protest

A bench of justices Kailash Gambhir and Sunita Gupta said Kejriwal can raise whatever legal issues he wants to, once he comes out of jail and that he should not make it a prestige issue.

After senior advocate Shanti Bhushan and advocate Prashant Bhushan, appearing for Kejriwal, sought to meet the Aam Aadmi Party (AAP) leader in prison to seek his instruction and put forth the court's suggestion, the bench allowed themto meet him anytime before 1 PM.

The court will now hear the matter at 3 PM.

The judges advised Kejriwal to furnish the bail bond and said that the same would be subject to final outcome of the legal issues raised by him.

The legal issue raised by Kejriwal, in his petition seeking his immediate release from the jail, is whether bail bond is necessary in summons case when accused appears and is accompanied by a lawyer.

The petition challenged the May 21 and 23 orders of a magisterial court remanding Kejriwal in judicial custody for not furnishing bail bond in the criminal defamation complaint filed by Gadkari, saying the same was not mandatory and he should have been allowed to give a written undertaking instead.

Kejriwal in his plea, filed through advocate Rohit Kumar Singh, has said the magisterial order sending him to judicial custody was "illegal" as it was based on a "completely wrong premise of law."

During the proceedings, the bench suggested that Kejriwal should furnish bail bond and challenge the magisterial orders once he comes out of jail.

It also questioned how a habeas corpus, filed on behalf of Kejriwal, applies against a judicial order. A writ of habeas corpus is used to bring a prisoner or detainee before the court to determine if the person's imprisonment or detention is lawful.

Kejriwal's counsel argued that his detention is "totally illegal" as only a person in custody is required to furnish bail bond.

The counsel argued that Kejriwal had appeared in pursuance to summons of the court and was accompanied by a lawyer and, therefore, there was no need for him to furnish bail bond, especially when he was willing to give an undertaking.

They said the requirement of pre-trial bail in the current situation is an antiquated practice which is absent in socially developed and forward nations like the US.

When the accused was present in court with counsel in pursuance to its summons, then there was no need to direct him to furnish bail bond, the counsel argued.

Senior advocate Pinky Anand, appearing for Gadkari, opposed the habeas corpus plea, saying such a petition was not maintainable against judicial orders.

She also argued that under the law, every person is required to furnish bail bonds in such cases to ensure his presence.

She also objected to Kejriwal's conduct in the jail by having written an open letter questioning the magisterial orders sending him to judicial custody.

A former Delhi Chief Minister, Kejriwal was sent to judicial custody by a magistrate on May 21 for two days. On May 23, his custody was extended by 14 days till June 6 after he refused to furnish a bail bond when he was granted bail in the case.

The magistrate had refused to review its May 21 order remanding Kejriwal in judicial custody for not furnishing the bail bond and had asked him to approach the higher court, challenging the decision.

Kejriwal was earlier summoned as an accused by the court in the defamation complaint in which Gadkari had alleged that he was defamed by the AAP leader, who had included his name in the party's list of "India's most corrupt".

On May 21, the court had granted bail to Kejriwal in the defamation complaint, saying the offence under Section 500 of IPC was bailable and had asked him to furnish a personal bond.

He, however, was taken into custody after he refused to give the bail bond, saying the case was politically motivated and he does not wish to seek bail. He had said that he was ready to give an undertaking that he would appear in the court whenever required.

The court had on February 28 summoned Kejriwal as an accused in the case, observing that statements allegedly made by the AAP leader have the effect of "harming the reputation" of the complainant.

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News Network
March 6,2020

New Delhi, Mar 6: Shares of YES Bank and State Bank of India came under huge selling pressure on Friday as developments unfolded regarding SBI picking stake in the private lender. Shares of the lender hit record low of Rs 5.55, plunging 85 per cent, and were trading below its previous low of Rs 8.16 hit on March 9, 2009.

SBI, on the other hand, slumped 11 per cent to Rs 257.35 on the BSE. The benchmark S&P BSE Sensex was trading with a cut of over 3 per cent at 37,251.37 level.

In the past three months, share price of the private lender has plunged 41 per cent, while the state-owned lender has slipped 14 per cent. In comparison, the S&P BSE Sensex has dipped 5.6 per cent till Thursday.

On Thursday, the Reserve Bank of India superseded the board of troubled private sector lender YES Bank and imposed a 30-day moratorium on it “in the absence of a credible revival plan” amid a “serious deterioration” in its financial health.

During the moratorium, which came into effect from 6 pm on Thursday, YES Bank will not be allowed to grant or renew any loans, and “incur any liability”, except for payment towards employees’ salaries, rent, taxes and legal expenses, among others.

This is the first time that a bank of this size will be put under a moratorium by the RBI.

“The financial position of YES Bank had undergone a steady decline “largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits,” RBI said in a statement.

“After the moratorium, the next step will be to infuse to money and keep the bank afloat. So from shareholders’ point of view, the future is certainly hazy as the capital requirement is huge. The good part, however, is that the RBI has stepped in and depositors don't have to worry,” says Siddharth Purohit, a research analyst at SMC Securities.

Meanwhile, analysts at Nomura believe that placing the Bank under moratorium implies that equity value in the bank would be negligible, and that the chances of private capital participating in future capital raising plan are near zero.

"Any resolution for Yes Bank is more proposed from the perspective of deposit holders and systemic stability, and not from the perspective of Yes Bank equity investors or even perpetual bond holders," they wrote in a note dated March 6.

In another development, SBI’s Board Thursday gave in-principle approval to consider an “investment opportunity” in YES Bank, even as it said “no decision had yet been taken to pick up stake in the bank”.

According to a  report, highly-placed sources indicated a rescue plan involving SBI and Life Insurance Corporation of India (LIC) was being discussed and an announcement in this regard might be made soon.

“While the finer details of the deal are being worked out, it is anticipated that both SBI and LIC together will take a 51 per cent stake in the bank, with a one-year lock-in period,” the report said.

Most analysts believe it is a positive step for the Indian financial sector as the government has tried to avoid a repeat of IL&FS-like crisis.

“The move is a positive step for the financial sector as a whole. By this, the government has tried to avoid a repeat of IL&FS-like crisis and has saved the depositors,” said AK Prabhakar, Head of Research at IDBI Capital. While we know that YES Bank has a huge pile of bad loans, SBI is the only bank that has the capacity to absorb it, he added.

However, the valuation at which YES bank would be taken over remains a cause of concern.

Global brokerage firm JP Morgan Thursday cut its target price for YES Bank on Thursday to Rs 1 per share, taking into account the potential fall in the lender’s net worth due to stressed assets.

“We believe forced bailout investors will likely want the bank to be acquired at near-zero value to account for risks associated with the stress book and likely loss of deposits. We think the bank will need to be recapitalised at nominal equity value and could test dilution of additional tier 1 (AT1) capital. We remain underweight and cut our target price to Rs 1 as we believe net worth is largely impaired,” JP Morgan said in a note.

Global brokerage firm Nomura estimates a need of Rs 25,000-44,000 crore and adjusted for Rs 7,400 crore of current coverage, if the current stress of Rs 65,000-70,000 crore faces 70 per cent loss given default (LGD).

"It implies Rs 18,000-37,000 crore needed for provisioning against the current net worth of Rs 25,700 crore Also, to run as going concern, the bank would require over Rs 20,000 crore of CET-1 capital as well," the note said.

YES Bank has registered slippages of Rs 12,000 crore so far in FY20, while it has placed Rs 30,000 crore of loan assets under the watch list. Its deposits stood at Rs 2.09 trillion on September 30, 2019, while its advances totalled Rs 2.24 trillion. The bank has delayed publishing its December quarter results by a month to March 14.

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News Network
February 22,2020

New Delhi, Feb 22: China is delaying grant of clearance to India's proposal to send an Indian Air Force flight to carry relief material for people affected by coronavirus in the neighbouring country and bring back Indians from its city of Wuhan, official sources said Saturday.

India was to send a C-17 military transport aircraft to Wuhan, the epicentre of the coronavirus outbreak, on February 20 but the plane could not take off as permission was not granted for the flight.

"China is deliberately delaying grant of clearance for the evacuation flight," a high-level source said.

The aircraft was to carry a large consignment of medical supplies to China and bring back more Indians from Wuhan.

Sources said the Chinese side continued to maintain that there was no delay in granting permission for the flight to go, but "inexplicably" the clearance has not been given.

In a letter to President Xi Jinping earlier this month, Prime Minister Narendra Modi conveyed India's solidarity to the people and government of China in meeting the challenge of the coronavirus outbreak and offered to provide assistance to the country.

India then put together relief supplies in pursuance of Modi's commitment as a token of India's solidarity, particularly in the 70th year of the anniversary of diplomatic relations between the two countries.

"These supplies have been offered even as India faces tremendous shortage itself, given our ethos of helping others in their hour of need," said a source aware of the issue.

The items being supplied are gloves, surgical masks, feeding pumps and defibrillators based on the requirements as indicated by the Chinese side.

India's national carrier Air India has already evacuated around 640 Indians from Wuhan in two separate flights.

According to estimates, over 100 Indians are still living in Wuhan. A sizeable number of countries have evacuated their citizens from China and restricted movement of people and goods to and from the country in view of the massive outbreak of coronavirus there.

Indian nationals in Wuhan continue their long wait for the flight. The delay is causing them and their family members in India tremendous mental anguish, said the sources.

They said relief and evacuation flights from other countries including by France are allowed to operate by China but the permission has not come through in India's case.

"Are they not interested in Indian aid provided as our token of support? Why are they creating roadblock in evacuating our nationals from Wuhan and putting them under hardship and mental agony?" said a person aware of the issue.

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Agencies
June 10,2020

New Delhi, Jun 10: The Enforcement Directorate (ED) on Wednesday brought back over 2,300 kg of polished diamonds and pearls worth Rs 1,350 crore of firms belonging to Nirav Modi and Mehul Choksi from Hong Kong, officials said.

Out of the 108 consignments that landed at Mumbai, 32 belong to overseas entities "controlled" by Modi while the rest are of Mehul Choksi firms.

Both the businessmen are being probed by the ED under the Prevention of Money Laundering Act (PMLA) in connection with an over USD 2 billion alleged bank fraud at a PNB branch in Mumbai.

The valuables include polished diamonds, pearls and silver jewellery, and is worth Rs 1,350 crore. 

The ED completed "all legal formalities" with authorities in Hong Kong to bring back these valuables, the agency said.

These will formally seized under the PMLA now, it said.

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