Kotak Bank / Uday Kotak Vs RBI

A tussle between a private bank and Reserve bank of India is ongoing in Court.

I will reproduce what Mint newspaper stated:

The Bombay high court will hear on 12 March Kotak Mahindra Bank Ltd’s petition challenging the Reserve Bank of India’s (RBI) rejection of its proposal to reduce promoter shareholding. The central bank had asked all banks to reduce promoter stake to 20% of paid-up capital by 31 December 2018, and 15% by 31 March 2020. According to BSE data, promoters held 30.02% in Kotak Mahindra Bank as on 30 September.

My question is who should bear the legal expenses in the above matter:

1. Uday Kotak
2. Kotak Mahindra Bank

As this appears a personal fight of an Promoter with Reserve Bank of India, i believe Mr. Kotak is footing the bill himself and not passed on to the Kotak Bank legal expenses.

The fight should have been Uday Kotak Vs RBI and not Kotak Mahindra Bank Vs RBI

I have not managed to read about it in any of the newspapers.

Here again the Board of Directors of the Kotak Bank passed a resolution to take up the matter with Court.

The heart of the matter is why Board of Directors (excluding Uday Kotak) participated in the decision to contest Reserve Bank of India decision. It appears weird that Board has taken a call when at stake is Rs.15,000 crore and benefiting a single director / shareholder.

Mr. Hazari had stated in his articlce:

This writer in April 2017 had estimated the gain to the promoters and consequent notional loss to non-promoter shareholders of KMB at nearly Rs 4,000 crores, as the share price increased to Rs 872 on March 31, 2017 from Rs 657 as on March 31, 2015. As the share price of KMB further increased to Rs 1,342 on June 30, 2018, the notional gain increased to a staggering Rs 15,609 crores.

Where is the Corporate Veil?