Ranbaxy's ex-promoter Shivinder Singh was on Thursday arrested by the Delhi Police in an alleged case of fraud, news agency PTI reported. The Economic Offence Wing (EOW) of the Delhi Police also arrested Kavi Arora, Sunil Godhwani and Anil Saxena in connection to diversion of public money and investing in their firms, the report also said citing unidentified officials. EOW Delhi is investigating a complaint from Religare Finvest related to misappropriation of funds amounting Rs 740 crore, CNBC TV18 reported. A search is also reportedly on for Shivinder Singh’s elder brother Malvinder Singh, who is also named in the case.
A complaint was registered by Religare Finvest with the EOW of Delhi Police against the Singh brothers in December last year. Thereafter, a case was lodged against them in May, accusing them of criminal actions under the Indian Penal Code (IPC) including cheating, criminal breach of trust, criminal misappropriation, and forgery with regard to issuance and redemption of preference shares of REL done between 2008-16. Shivinder Singh had earlier moved the NCLT against Malvinder Singh and Religare's ex-CMD Sunil Godhwani alleging collusion and financial fraud. He, however, later withdrew the complaint.
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.