Yes Bank is concerned about Dish TV’s Rs 1,378 crore investment in OTT platform Watcho, the report said.
The lender suspects that certain related party transactions are unreported by Dish TV, and wants to conduct a forensic audit on the nature of the investments, the news channel reported.
The bank is of the view that the Dish TV management is not cooperating on information disclosure, the report said.
Yes Bank told CNBC-TV18 that it won’t make any further comments than what is in the public domain.
Yes Bank had earlier asked for the removal of the directors due to the company board deciding to raise Rs 1,000 crore via a rights issue. While Yes Bank was not in favour of approving a capital-raising exercise by way of a rights issue, Dish TV’s board made an announcement on May 28, 2021 of its intention to proceed with a Rs 1,000-crore rights issue
In a notice dated September 3, Yes Bank said Dish TV’s board was not adhering to good corporate governance standards.
The lender sought the removal of Dr Rashmi Aggarwal, Shankar Aggarwal, Ashok Mathai Kurien and Bhagwan Das Narang as directors, along with Jawahar Lal Goel as Managing Director of the company.
“The Board is not acting in line with good corporate governance standards and is not a fair representation of the incumbent significant shareholders of the Company being various banks and financial institutions holding about 45 percent shareholding in the Company. The Board is purportedly acting at the behest of certain minority shareholders holding merely-6 percent of the shares in the Company” Yes Bank stated in the notice.
CNBC-TV18 reported that Dish TV’s auditors had raised red flags on the investment Watcho, which was set up in April 2019.