By Sanjeev Sharma
New Delhi, June 1 (IANS) A tussle is brewing with claims and counter-claims flying as Dish TV has rejected Yes Bank’s claim on acquiring its shares and said that any such acquisition without prior approval of the Ministry of Information and Broadcasting will not be in compliance with the DTH guidelines issued by the government.
This follows an announcement by Yes Bank earlier that pursuant to invocation of pledge of shares, it has acquired 24.19 per cent of the post-issue paid-up share capital of Dish TV as at March 31, 2020.
Yes Bank had said the shares have been acquired pursuant to invocation of pledge of the shares subsequent to default/breach of terms of credit facilities sanctioned by Yes Bank to Essel Business Excellence Services Ltd, Essel Corporate Resources Private Ltd, Living Entertainment Enterprises Private Ltd, Last Mile Online Ltd, Pan India Network Infravest Ltd, RPW Projects Private Ltd, Mumbai WTR Private Ltd & Pan India Infraprojects Private Ltd.
Dish TV has said in a regulatory filing that the Yes Bank disclosure contains incorrect facts. It has asked Yes Bank to obtain the permission from the Ministry of Information and Broadcasting, prior to effecting the transfer of shares, to Yes Bank directly or indirectly.
It has said that Dish TV is a direct to home (DTH) operator and is governed by the DTH license issued by the Centre. The DTH guidelines specifically prohibit any change in the equity structure of the licensee company without the approval of the I&B Ministry.
While Yes Bank has said that the acquisition of pledged shares was done due to a default, Dish TV denies that it is in default or that it had pledged the shares.
Dish TV said it is not in default of any payment obligations to Yes Bank under the financing facilities availed from Yes Bank.
It has also said that no shares have been pledged by the promoters of the company or any other entity for the loans availed by Dish TV from Yes Bank.
“Therefore, there cannot be any question of invocation of any pledged shares in related to the loans availed by Dish TV from Yes Bank,” it said.
(Sanjeev Sharma can be contacted at [email protected])