Ranbaxy Case | SC holds Malvinder, Shivinder Singh and Fortis guilty of contempt
New Delhi | Jagran News Desk: The Supreme Court on Friday held Malvinder Singh and his brother Shivinder Singh -- ex-promoters of Ranbaxy -- guilty of contempt of court for violating its order asking them not to divest their shares in Fortis Healthcare Limited. The apex court also held Fortis Healthcare guilty of contempt.
A bench comprising CJI Ranjan Gogoi and Justice Deepak Gupta held the former Ranbaxy promoters guilty of contempt of court and said that they had violated its earlier order by which the sale of their controlling stakes in Fortis Group to Malayasian firm IHH Healthcare was put on hold. The court also said that they would hear the Singhs on the quantum of sentence later.
This comes a day after the Enforcement Directorate (ED) arrested Malvinder in a money laundering case. He will now be produced before a metropolitan magistrate in the prison, when the ED is likely to seek their custodial interrogation.
The Supreme Court had earlier asked Malvinder and Shivinder Singh to give it a plan as to how they would honour the arbitral award of Rs 3,500 crore granted by a Singapore tribunal against them and in favour of Japanese drug manufacturer Daiichi Sankyo.
The Japanese firm had filed contempt petition against the former Ranbaxy promoters alleging that execution of their arbitral award had been in jeopardy as the Singh brothers disposed of their controlling stakes in Fortis Group to the Malaysian firm.
Daiichi in 2013 had alleged that the two brothers had concealed information about the US Food and Drug Administration and the Department of Justice investigating the company.
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.
Malvinder and Shivinder were the heirs to the multi-billion dollar Ranbaxy Laboratories Ltd founded by their father. The two, however, sold the company to Daiichi Sankyo in 2008 as they wanted to focuse on the family-owned Fortis Healthcare, a hospital chain, and Religare Enterprises, a financial services firm.
(With PTI inputs)
Posted By: Aalok Sensharma