Sebi told FHL to recover Rs 403 cr from Singh brothers, company tells HC

Sebi told FHL to recover Rs 403 cr from Singh brothers, company tells HC

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NEW DELHI: Fortis Healthcare Ltd (FHL) informed the Delhi High Court that Sebi has asked it to to recover ₹403 crore from former Ranbaxy Laboratories Ltd promoters Malvinder and Shivinder Singh, who allegedly diverted funds of FHL and its subsidiary Fortis Hospital Ltd.

FHL made the submission in a recent affidavit filed in an ongoing case by Japanese drugmaker Daiichi Sankyo against the Singh brothers and their firms.

Daiichi moved the high court seeking execution of the ₹3,500 crore a Singapore tribunal’s arbitral award won by it in April 2016.

Against the backdrop of Daiichi’s ongoing litigation seeking repayment of the amount by Singh brothers, FHL said that while passing any directions on discharge of claims owed by these persons and entities, the high court may also take into account the directions passed by Sebi and the corresponding interest of FHL upon any sums that are sought to be recovered.

FHL, in its affidavit filed before Justice Rajiv Shakdher, said it wanted to place on record orders passed by the Securities Exchange Board of India (Sebi) in connection with an investigation carried out by it pertaining to alleged diversion of funds of FHL and its subsidiary, Fortis Hospital, by Singh brothers.

Sebi, in an ad interim ex-parte order of October 17, 2018, had directed that FHL take necessary steps to recover ₹403 crore along with interest from the Singh brothers and various promoter companies within three months.

The market regulator had also directed Singh brothers and others not to dispose of or alienate any of their assets or divert any funds without its prior permission, till completion of the investigation.

In March this year, Sebi gave another order confirming the directions passed in the previous orders.

The high court on February 19, 2018 restrained the brothers and 12 others from selling or transferring their shares or any movable or immovable property as disclosed by them before the high court earlier.

The high court had on August 10, 2018 restrained the Singh brothers from operating their bank accounts in India or abroad and selling any property.

It had directed the brothers and their firms RHC Holding Pvt Ltd and Oscar Investments Ltd to disclose the bank account details.

A Singapore tribunal had in April 2016 passed the award in Daiichi’s favour holding that the brothers had concealed information that their company was facing probe by the US Food and Drug Administration and the Department of Justice while selling its shares.

Source- Livemint.