HC rejects interim relief for Kotak in row with RBI

Mumbai: The Bombay High Court Tuesday once again refused to give any interim relief to Kotak Mahindra Bank in its row with the RBI over a regulatory diktat to pare promoter's holding in the fourth largest private sector lender.

The court turned down the bank's plea for an interim protection from regulatory action saying the matter is not as simple as the petitioner is making it out to be, and posted the matter for further hearing to April 1.

When the petition came up for hearing before a division bench of justices AS Oka and MS Sanklecha, senior counsel Harish Salve, appearing for the bank, sought an interim protection from the RBI directive and proposed capping voting rights of the promoters.

"We need interim protection. The RBI's concern is with regard to concentration of control of power. We will give assurance that till May 2020 promoters shall not vote in excess of 20 per cent," Salve told the court.