Madras HC tells DBS Bank to create reserve fund for LVB shareholders

The court also asked DBIL to give an undertaking that the bank would give cash compensation to the shareholders of LVB if it was asked to do so.

The Madras High Court has asked DBS Bank India (DBIL) to create a reserve fund if it (the court) orders that the Lakshmi Vilas Bank (LVB) shareholders be compensated for the loss they have suffered in the process of amalgamation with DBIL.

The court’s Division Bench, consisting of Justice Vineet Kothari and Justice M S Ramesh, on Friday passed an interim order on a writ petition filed by Kolkata-based AUM Capital Market.

Senior Counsels P S Raman and Arvind Datar, representing the company, have asked for a stay on the amalgamation of LVB with DBIL. The amalgamation came into effect on November