Supreme Court Revisits Yes Bank Bond Write-Off Controversy

The Supreme Court has redirected the review of Yes Bank's decision to write off Rs 8,415 crore in additional tier 1 bonds to another bench. The bonds were written off during a bailout, but the Bombay High Court quashed this decision, questioning the administrator's authority. Investors and the RBI challenge the ruling.

The Supreme Court has transferred the responsibility of reviewing the appeals against the quashing of Yes Bank's decision to write off Rs 8,415 crore in additional tier 1 (AT-1) bonds to another bench. These bonds were devalued as part of Yes Bank's bailout effort, but this move was nullified by a Bombay High Court ruling.

Chief Justice Sanjiv Khanna, along with Justices Sanjay Kumar and KV Viswanathan, decided not to proceed with the four appeals filed in response to the high court's decision. The cases will now be heard before a bench led by Justice A S Oka.

Investors are seeking financial remedies as they are stranded, insisting that the bonded write-down has unfairly wiped out their capital with no faults of their own. The Supreme Court hinted at potentially using Article 142 of the Constitution to find a resolution.

(With inputs from agencies.)