Yes Bank “strongly suspect” that some investments made by dish tv are “suspicious”, CNBC-TV18 has reported.
Yes Bank is concerned about Dish TV’s Rs 1,378 crore investment in OTT platform watch, stated in the report.
The news channel reported that the lender suspects that some related party transactions have not been reported by Dish TV, and wants to conduct a forensic audit on the nature of the investment.
The report states that the bank believes that the Dish TV management is not cooperating in the disclosure of the information.
Yes Bank told CNBC-TV18 that it would not comment further on what is in the public domain.
Yes Bank had earlier asked for removal of directors after the company’s board decided to raise Rs 1,000 crore through a rights issue. While Yes Bank was not in favor of approving the capital raising exercise through the rights issue, the board of Dish TV announced its intention to go ahead with the Rs 1,000 crore rights issue on May 28, 2021.
Yes Bank said in a notice on September 3 that the board of Dish TV is not adhering to good corporate governance standards.
The lender sought the removal of Dr Rashmi Agarwal, Shankar Agarwal, Ashok Mathai Kurien and Bhagwan Das Narang as directors along with Jawaharlal Goel as managing director of the company.
“The Board is not functioning in accordance with good corporate governance standards and the existing significant shareholders of the Company are not properly represented by various banks and financial institutions holding about 45 per cent stake in the Company. The Board reportedly holds only -6 per cent shares in the Company. is acting at the behest of certain minority shareholders,” Yes Bank said in the notice.
CNBC-TV18 reported that auditors for Dish TV had raised red flags on InvestWatch, which was set up in April 2019.
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