Former Ranbaxy promoter Shivinder arrested in Rs. 740cr fraud case
What's the story
Former promoter of pharmaceutical giant Ranbaxy Laboratories, Shivinder Mohan Singh, was arrested by the Economic Offenses Wing of the Delhi Police, on Thursday.
The arrest was made in a case of fraud and misappropriation of funds to the tune of Rs. 740 crore.
Meanwhile, a lookout notice against Shivinder's elder brother Malvinder Mohan Singh has also been issued.
Here are the details.
Details
Singh brothers were raided by ED earlier in August
Notably, the police have also arrested Sunil Godhwani, former Chief of Religare Enterprises Limited (REL), Religare Finvest MD Kavi Arora, and Group CFO Anil Saxena.
The arrests have been made in relation to a case filed by Religare Finvest Limited, the lending arm of REL, against the Singh brothers, in December, last year.
Moreover, the two were recently raided by Enforcement Directorate in August.
Quote
"They alleged siphoned off and diverted money of general public"
The EOW, Delhi police, in a statement, said, "The alleged persons (Shivinder Singh and Malvinder Singh) systematically siphoned off and diverted money of general public in a clandestine manner for their own benefit."
Sale
In 2008, Singh brothers sold Ranbaxy for Rs. 10,000 crore
Heirs to the country's leading drug maker, Ranbaxy Laboratories, founded by their father, the Singh brothers had sold the company to Japanese firm Daiichi Sankyo for Rs. 10,000 crore, in 2008.
The two then shifted focus to the family-owned hospital chain Fortis Healthcare, and Religare Enterprises, a financial services firm.
However, unending court cases and increasing financial troubles continued to haunt the brothers.
Separate case
Separately, the brothers owe Rs. 3,500 crore to Daiichi Sankyo
Over 10 years after the major deal, the brothers were told by the Supreme Court that they might have to face jail for disobeying orders to pay more than Rs. 3,500 crore, that they owe to Daiichi Sankyo.
The sum was awarded by a Singapore tribunal in a case alleging concealment of information by the brothers during the Ranbaxy deal.
Information
Subsequently, Singh brothers had to resign as directors of Fortis
Subsequently, the brother duo had to resign as directors from the board of Fortis Healthcare in February last year, after the Delhi High Court supported the Singapore tribunal award for Daiichi Sankyo.