# Delhi HC halts Unity SFB’s share capital plan in BharatPe dispute — retained record

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source: [news](https://highsignal.app/data/news) (news:india-entrackr)  published 2026-07-28 05:03 ingested 2026-07-28 08:23

[original source ↗](https://entrackr.com/news/delhi-hc-halts-unity-sfbs-share-capital-plan-in-bharatpe-dispute-12203982)

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The Delhi High Court has restrained Unity Small Finance Bank (Unity SFB) from moving ahead with a proposal to increase its authorised share capital, giving interim relief to BharatPe in an ongoing shareholder dispute between the two stakeholders.
According to court proceedings, the bank had proposed increasing its authorised share capital from Rs 4,000 crore to Rs 4,900 crore. The proposal was aimed at facilitating the conversion of certain warrants into compulsorily convertible preference shares (CCPS) before their expiry later this year.
BharatPe opposed the move and argued that the proposal could not be carried out without its consent under the shareholders' agreement. The fintech company also claimed that the conversion would significantly dilute its stake in Unity SFB.
The High Court has directed the bank not to place the proposal before its board for now, while the dispute is being resolved through arbitration. The order is interim in nature and does not decide the merits of the case.
The dispute marks the latest chapter in the evolving relationship between BharatPe and Centrum Group, the two key shareholders of Unity SFB.
Unity Small Finance Bank was launched in 2021 after a consortium led by BharatPe and Centrum Financial Services took over the troubled Punjab and Maharashtra Cooperative (PMC) Bank under a Reserve Bank of India-backed reconstruction scheme. BharatPe initially emerged as one of the largest shareholders in the bank, with a stake close to 49%.
However, differences have surfaced between the shareholders over governance and capital-related decisions. BharatPe has alleged that the proposed capital restructuring would materially reduce its ownership without the approvals required under the shareholder agreement.
The case is significant as it highlights the importance of shareholder rights and governance in financial institutions, particularly those created under regulatory reconstruction plans. The arbitration proceedings will now determine whether the proposed capital increase and share conversion comply with the agreements signed between the parties.
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