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Ranbaxy-Daiichi case: Malvinder, Shivinder Singh battling host of fund siphoning charges

FE Bureau
Malvinder singh, Shivinder Singh. Daiichi

Even as the Singh brothers are facing the heat over Daiichi payment, they have also been accused by their own companies of siphoning off funds.

While estimates on how much money was siphoned off over the years can only come to light through a forensic audit, Malvinder Singh has alleged misappropriation of company funds by his brother Shivinder, Radha Soami Satsang s Gurinder Singh Dhillon and Religare s former CEO Sunil Godhwani of Rs 8,742 crore in the holding company, RHC Holding.

He has alleged that these funds were illegally siphoned from Fortis and Religare.

After being accused of serious fraud charges, the Singh brothers have been feuding against each other. Last month, Malvinder filed a criminal complaint against Shivinder, Dhillon and Godhwani for financial fraud in RHC Holding and sought Rs 8,742 crore as compensation.

Shivinder had earlier moved the NCLT against Malvinder and Godhwani alleging collusion and financial fraud. However, he later withdrew the complaint.

In perhaps one of the biggest corporate mis-governance and financial fraud cases after Satyam, Fortis Healthcare-appointed law firm Luthra and Luthra s investigation report charged the brothers of siphoning off funds to the tune of Rs 445 crore. Subsequently, Fortis had moved the markets regulator Sebi to seek arrest of the brothers.

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Religare Finvest, a subsidiary of Religare Enterprises, in July last year had filed bankruptcy proceedings to the tune of Rs 2,250 crore against the brothers. Religare Finvest initiated the corporate insolvency resolution process under the Insolvency and Bankruptcy Code against 19 entities related to the erstwhile promoters owing approximately Rs 2,250 crore to RFL. These loans formed part of corporate loan book of RFL.

The Serious Fraud Investigation Office (SFIO) has also, according to reports, estimated a financial fraud of more than Rs 2,000 crore in Fortis and Religare.