In an order today, a bench of Justices MR Shah and Sanjiv Khanna said DVIL has to transfer the amount into a State Bank of India account by November 24, bringing the more-than-4-year old resolution saga to its climax.
In its submission to the court on November 18, DVIL said that ₹500 crore is lying in a deposit account in India with their custodian Standard Chartered Bank and the money is ready for disbursement to lenders. However, the hedge fund argued that some steps of the resolution plan like documentation and taking regulatory approval is yet to be completed.
“Documentation and approvals happen only after we get the money in the escrow account because the amount will only be distributed after we receive all approvals. We cannot hand over the company without receiving the amount,” said a banker aware of the transaction.