Former Ranbaxy and Religare promoter and founder of Fortis Healthcare Shivinder Singh on Tuesday moved the National Company Law Tribunal against his brother Malvinder Singh, accusing him of oppression and mismanagement, BloombergQuint reported. Shivinder Singh also sought action against Sunil Godhwani, a former Religare Enterprises chairperson.
Shivinder Singh said the decision was long overdue but one that was delayed in the hope that “better sense shall eventually prevail and another ugly chapter of family feud would not be written in our family business’ glorious history”.
In a statement, Shivender Singh added that “the collective, ongoing actions of Malvinder and Sunil Godhwani had led to a systematic undermining of the interests of the companies and their shareholders”.
The statement referred to Shivender Singh’s decision to step down from his administrative role at Fortis to join spiritual group Radha Soami Satsang Beas. “I took public retirement to my Spiritual home, Beas, to serve my master, in 2015; leaving the thriving company I founded in ‘trusted’ hands, and in a period of less than two years, it has moved towards disintegration and ruin of a national healthcare asset,” Shivender Singh said.
Malvinder Singh and Sunil Godhwani have not yet responded, according to Business Standard.
The Singh brothers were heirs to the Ranbaxy Laboratories, which they sold to Japanese drug maker Daiichi Sankyo. In January 31, the Delhi High Court allowed Daiichi Sankyo to enforce a foreign award ordering Malvinder Singh, Shivinder Singh and 13 others to pay Rs 3,500 crore for allegedly luring the Japanese drug maker to purchase Ranbaxy by withholding information.
Sun Pharmaceuticals eventually purchased Ranbaxy from Daiichi Sankyo in 2015 for $3.2 billion (Rs 20,600 crore).