Malvinder Singh, ex-Ranbaxy Promoter, arrested by ED in money laundering case
New Delhi | Jagran News Desk: The Enforcement Directorate on Thursday arrested Pharmaceutical giant Ranbaxy Laboratories' ex-promoter Malvinder Singh in a money laundering case.
Singh, who is already in Delhi Police's custody in connection with a fraud case, has been handed over to the central agency.
The central agency also arrested former CMD of Religare Enterprises Ltd Sunil Godhwani in the case. The ED took both the accused from the Tihar jail in Delhi, where they are currently lodged in a case filed by the Delhi Police in relation to the alleged scam.
The two will now be produced before a metropolitan magistrate in the prison, when the ED is likely to seek their custodial interrogation.
“Singh and Godhwani are accused of laundering money, punishable under sections 3 and 4 of the Prevention of Money Laundering Act,” the ED said.
Enforcement Directorate arrests former Ranbaxy promoter Malvinder Singh and former CMD of Religare Enterprises, Sunil Godhwani in Religare Finvest Ltd (RFL) funds misappropriation case pic.twitter.com/nhr3Xqekz4— ANI (@ANI) November 14, 2019
The ED had initiated a money laundering probe against Singh and his brother Shivinder. The two were ex-promoters of Ranbaxy.
The two were the heirs to the multi-billion dollar Ranbaxy Laboratories Ltd founded by their father. However, they sold it to Japanese firm Daiichi Sankyo in 2008 and focused on the family-owned Fortis Healthcare, a hospital chain, and Religare Enterprises, a financial services firm.
An arbitration tribunal was moved by Daiichi in 2013 in Singapore alleging that the two -- while selling Ranbaxy -- had concealed information about the US Food and Drug Administration and the Department of Justice investigating the company. In 2016, the tribunal ordered the two brothers to pay Daiichi Rs 2,562 crore.
The two, however, challenged the decision but the Delhi High Court in 2017 ordered them to pay up. The two then resigned from the post of the directors. In September 2017, Shivinder filed a case against his brother Malvinder alleging "oppression and mismanagement" in their join business.
Meanwhile, the apex court last year dismissed the two's appeal and confirmed the international arbitral award, saying it was not inclined to interfere with it.
Posted By: Aalok Sensharma