New Delhi: The Delhi Police on Friday arrested former Fortis Healthcare promoter Malvinder Singh in an alleged fraud case. His brother Shivinder Singh and three others were arrested in connection with the case on Thursday.
Kavi Arora, Sunil Godhwani and Anil Saxena were also arrested by the Economic Offence Wing of Delhi Police for allegedly diverting public money and investing in other companies, they said.
A complaint was filed by Religare Finvest Limited (RFL) alleging that loans were taken by Singh while managing that firm but the money was invested in other companies.
"RFL saw a change in management. When the new management took over, they found that a loan had been taken but the money been invested in other companies linked to Singh and his brother. They filed a complaint with the EOW and subsequently, an FIR was registered," said a senior police officer.
Shivinder's brother Malvinder is absconding and a look out circular has been issued against him.
Ranbaxy Laboratories Limited which was established in 1961 by Dr. Bhai Mohan Singh, was handled by his grandsons, Malvinder Mohan Singh and Shivinder Mohan Singh, until 2008 when the company was later handed over to Japanese firm Daiichi Sankyo. The two brothers focused on the family-owned Fortis Healthcare, a hospital chain, and Religare Enterprises, a financial services firm after the sale.
The Enforcement Directorate initiated the money laundering case against them after Religare Finvest Limited filed a case against the brothers for cheating, fraud and misappropriation of funds.
Rs 3500 arbitral award to be paid
Earlier, a tribunal in Singapore had passed an arbitral award in favour of Daiichi holding that the Singh brothers had concealed information that the Indian company was facing probe by the US Food and Drug Administration and the Department of Justice, while selling its shares.
The high court had on January 31, 2018 upheld the international arbitral award passed in favour of Daiichi and paved the way for enforcement of the 2016 tribunal award against the brothers who had sold their shares in Ranbaxy to Daiichi in 2008 for Rs 9,576.1 crore. Sun Pharmaceuticals Ltd had later acquired the company from Daiichi.
Daiichi had moved the high court seeking direction to the brothers to take steps towards paying its Rs 3,500 crore arbitration award, including depositing the amount. It had also urged the court to attach their assets, which may be used to recover the award. The Singh brothers resigned as directors from the board of Fortis Healthcare in February 2018.
On February 16 last year, the Supreme Court had dismissed Singh brothers' appeal against the high court verdict upholding the international arbitral award, saying it was not inclined to interfere with it.
Meanwhile, the Delhi HC court said the Rs 3500 crore amount should be deposited by 55 garnishees to RHC Holdings of the Singh brothers. The amount should be deposited with the Registrar General of the Delhi High Court within 30 days. A garnishee order is an order against a third party for the recovery of debt or dues.
RHC is an investment company owned by Mr. Malvinder Mohan Singh and Mr. Shivinder Mohan Singh.
The court also directed the judgement debtors, including Singh brothers, to deposit the title deeds of all their immovable properties, original share certificates held by them with the registrar general of the high court within 30 days and asked them not to dispose of or alienate with the possession of their assets till the next date of hearing on November 14.
Justice J R Midha said if any party disputes the claim of RHC Holdings or other judgment debtors, they shall file an affidavit to place on record the contention.
The court, in its September 27 order, also directed that the "55 parties shall not dispose of, alienate, encumber either directly or indirectly or otherwise part with the possession of any assets to the tune of the amount mentioned in the affidavit of July 30, 2019 except in the ordinary course of business such as payment of salary and statutory dues till the next date of hearing".
The 55 parties include RSSB chief's wife Shabnam Dhillon, sons Gurkirat Singh and Gurpreet Singh and daughter-in-law Nayan Tara Dhillon, RSSB associates' companies, former Religare Enterprises chief Sunil Godhwani and his brother Sanjay Godhwani.
The court had earlier restrained the Singh brothers and others from selling or transferring their shares or any movable or immovable property. The brothers had disclosed their assets to the court in sealed covers in December 2016 and March 2017 during the pendency of Daiichi's plea seeking enforcement of the 2016 arbitral award passed by a Singapore tribunal against them.
(With inputs from PTI.)