The Supreme Court on Thursday refused to allow Malvinder Singh and Shivinder Singh, the former promoters of Ranbaxy and Fortis, to sell the shares that they have pledged with banks in Fortis Healthcare, Mint reported. The shares of Fortis plunged by over 5% after the Supreme Court order.
The apex court told the brothers that they cannot sell any assets, either encumbered or non-encumberd, and also refused permission to banks seeking to sell pledged shares. On August 23, the Singhs had sought permission from the apex court to sell pledged shares after it’s August 11 order telling companies controlled by the two brothers to not sell shares in Fortis.
Earlier this month, Japanese drugmaker Daiichi Sankyo had moved the Supreme Court to block sale of promoter shares in Fortis. It has been fighting a legal battle to recover Rs 3,500 crore from the Singhs. Daiichi bought over Ranbaxy in 2008, and later merged it with Sun Pharmaceuticals in 2015.