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The Supreme Court has summoned cabinet records from the Finance Ministry in the matter of waiver of Additional Tier-1 (AT-1) bonds of Yes Bank worth Rs 8,415 crore. Besides, the court has also strongly reprimanded the Finance Ministry in the matter of waiving AT-1 bonds in 2023.

The country's largest court has asked Solicitor General Tushar Mehta to present the records and quorum details of the cabinet meeting and related documents by 3 pm.

SC expressed displeasure on Finance Ministry

Expressing strong displeasure on the Finance Ministry, the Supreme Court on Wednesday directed Solicitor General Mehta to present the cabinet proposal, business discussion of the meeting and related documents, on the basis of which the decision to waive additional tier-1 bonds worth Rs 8,415 crore in the year 2023 was taken.

SG Mehta will have to present the documents and work discussion related to the cabinet decision by 3 pm today. A bench headed by Justice Dipankar Dutta also asked Mehta, appearing for the Finance Ministry, to submit full disclosure of the rules of the cabinet meeting, details of the quorum and the names of the members present in the decision-making meeting.

Appeal in SC against HC decision

Earlier, Yes Bank, RBI and Finance Ministry had approached the Supreme Court in the year 2023. He had appealed against the January 2023 order of the Bombay High Court, in which the decision of the Reserve Bank of India and Yes Bank to write off Additional Tier-1 bonds worth Rs 8,415 crore was cancelled.

Institutional investors including mutual funds like Reliance Nippon and bondholders including financial institutions and retail investors had invested a total of Rs 8,415 crore in Yes Bank's AT-1 bonds. Subsequently, the bank's retail AT-1 bondholders moved the High Court challenging the decision and demanding their money back. The High Court had ruled in his favor.