Resilient Innovations Private Limited, the parent company of BharatPe, has moved the Delhi High Court against Centrum Financial Services Limited and JBCG Advisory Services Private Limited, alleging unauthorised transfers and creation of encumbrances over warrants issued by Unity Small Finance Bank. According to reports from Business Standard and Bar and Bench, the petition has been filed under Section 9 of the Arbitration and Conciliation Act, 1996, seeking interim protection against the transfer, sale, marketing or creation of any security interest in Series 1 and Series 2 warrants without *BharatPe'*s prior written consent.
The dispute centers around 1.9 billion warrants allotted to Centrum in November 2021. As reported by Business Standard and Bar and Bench, Centrum holds a 51 per cent stake in Unity Bank, while BharatPe holds the remaining 49 per cent. BharatPe has claimed that it contributed around ₹746 crore towards the repayment of depositors of the erstwhile Punjab and Maharashtra Cooperative Bank (PMC Bank) as part of the transaction that led to the establishment of Unity Bank. The petition also highlights the price at which the warrants allegedly changed hands, with Centrum subscribing to them at Re 0.01 each and later transferring 50 crore warrants to JBCG at Re 0.16 each. BharatPe claims JBCG subsequently offered those warrants onward at around ₹26 each.
According to the petition reported by Business Standard and Bar and Bench, JBCG transferred around 6.74 crore Series 1 warrants and 4 crore Series 2 warrants. BharatPe has further alleged that JBCG and Centrum created encumbrances over about 15 crore Series 1 warrants and 16.92 crore Series 2 warrants without obtaining its prior written approval. One of the transactions cited involves the alleged pledge of 8 crore Series 2 warrants by JBCG to Vistra ITCL (India) Limited, acting as trustee for UTI Alternatives. BharatPe has alleged that JBCG raised ₹200 crore against the pledged warrants and subsequently transferred 4 crore warrants to UTI Alternatives' schemes.
Justice Tushar Rao Gedela issued notice on the petition on September 9. As reported by Business Standard and Bar and Bench, the respondents have been given two weeks to file their replies, while Resilient will have three days thereafter to file its rejoinder. The matter will next be heard on October 1. The petition seeks directions restraining Unity Bank from registering or giving effect to any transaction involving the disputed warrants. BharatPe invoked arbitration on August 11 and nominated former Supreme Court judge Justice Vineet Saran as its nominee arbitrator. The dispute follows an earlier Section 9 petition in which the Delhi High Court restrained the respondents from proceeding with a proposal concerning the conversion of the Series 1 warrants.
