Former MP Subramanian Swamy approaches Delhi High Court seeking Constitutional Committee to probe the transfer of Rs 48,000 crore distressed assets of Yes Bank to asset reconstruction company JC Flowers, claiming that it attempts to evade laws and lacks fairness.

The division bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad, directs the Centre Government, RBI, SEBI, Yes Bank and JC Flowers Asset Reconstruction Private Ltd to file their responses within four weeks. 

Former MP PIL seeks a direction to the Centre, SEBI and RBI to formulate comprehensive guidelines in accordance with the recommendations of the committee to check any such future transactions and to regulate the arrangements entered into between banks or other financial institutions and asset reconstruction companies.

“As per the information available in the public domain, the transactions involving the transfer of the distressed asset portfolio from Yes Bank to JC Flowers lack fairness, attempt to evade relevant laws, and do not serve the best interests of the general public who have accounts with Yes Bank,” the plea states.

It adds that this transfer is connected to another transaction in which Yes Bank has acquired up to 19.9% stake in JC Flowers.

The plea states that “these transactions were made to benefit” only JC Flowers, “at the expense of” Yes Bank’s customers and shareholders and “are harmful to the economic wellbeing of the country and do not prioritise the recovery of public funds”.

The former- Minister also mentioned “growing rot” in the private banking sector, which has been further “accelerated by perpetual decay of corporate governance and ethical standards”.