In a setback to the Centre and YES Bank, the Supreme Court on Thursday upheld the Bombay High Court‘s 2023 ruling quashing the write-off of the lender’s Additional Tier-1 (AT1) bonds worth Rs 8,415 crore.
YES Bank had written off the bonds in March 2020 as part of a reconstruction scheme following its financial collapse.
Institutional investors, including mutual funds such as Reliance Nippon, and retail investors had invested Rs 8,415 crore in these bonds.
The bondholders subsequently approached the Bombay High Court, challenging the write-off and seeking recovery of their investments. The High Court ruled in their favour in January 2023, prompting YES Bank, the RBI and the Centre to challenge the decision in the Supreme Court.
