Singh brothers, ex-promoters of Ranbaxy held in Rs 740 crore fraud | What the case is all about
New Delhi | Jagran News Desk: The Economic Offences Wing (EOW) of Delhi Police on Friday formally arrested Ranbaxy's former promoter, Malvinder Singh. He was detained from Ludhiana yesterday on a complaint given by Religare Enterprises Limited.
The EOW, on Thursday, had arrested four people including Malvinder’s brother Shivinder Mohan Singh based on the complaint given by Manpreet Singh Suri in the case. The two are accused by Religare Finvest of fraud and misappropriation involving around Rs 740 crore.
The two were earlier raided by the Enforcement Directorate in August. The ED also initiated a money laundering case against them.
What is the case?
Shivinder and Malvinder Singh were the heirs of Ranbaxy Laboratories Ltd. The company was founded by their father. The two, however, sold it to Japanese firm Daiichi Sankyo and started focusing on the family-owned Fortis Healthcare.
Daiichi, however, moved an arbitration tribunal against the Singh brothers in Singapore in 2013. It alleged that the Singh brothers had concealed information about the US Food and Drug Administration and the Department of Justice investigating the company.
After this, the tribunal in 2016 asked the two brothers two pay Rs 2,562 crore to Daiichi. The two challenged the decision in Delhi High Court and soon after the Court’s order in 2018, they resigned as directors from the board of Fortis Healthcare.
In 2018, Shivinder filed a case against his brother Malvinder alleging ‘oppression and mismanagement’ in their joint business. After which SEBI ordered them to pay Rs 403 crore to Forties.
Meanwhile, the Supreme Court last year dismissed their appeal and confirmed the international arbitral award. The top court further said that the two could go to jail for disobeying orders to pay dues to Japanese firm Daiichi Sankyo.
The two were also raided by the Enforcement Directorate earlier this year in connection with the money laundering case.
Posted By: Aalok Sensharma