The Delhi Police on Thursday arrested former Ranbaxy promoters Shivinder Singh, his brother Malvinder Singh along with three others in a Rs 740 crore fraud case, PTI reported. The others have been identified as Kavi Arora, Sunil Godhwani and Anil Saxena. While the police arrested Shivinder Singh earlier in the evening, his brother Malvinder Singh was caught late at night after a lookout notice was issued against him.
The Economic Offences Wing detained Malvinder Singh before formally arresting him, according to ANI.
Lender Religare Finvest Limited has alleged that Shivinder and Malvinder Singh defrauded the firm of Rs 740 crore, NDTV reported. Religare Finvest has claimed that loans were taken by Shivinder Singh while managing that firm but the money was invested in other companies. The Enforcement Directorate had in August raided the duo’s homes and properties.
“RFL saw a change in management,” a senior police officer said. “When the new management took over, they found that a loan had been taken but the money been invested in other companies linked to Singh and his brother. They filed a complaint with the EOW and subsequently, an FIR was registered.”
In December 2018, Religare Finvest filed a criminal complaint with the Economic Offences Wing of the Delhi Police against the Singh brothers. A case was filed against the brothers in May.
The Singh brothers were heirs to Ranbaxy Laboratories, which was founded by their father. They sold it to Japanese firm Daiichi Sankyo in 2008 and focused on the family-owned Fortis Healthcare. However, Daiichi Sankyo is now seeking to recover Rs 3,500 crore from the brothers, after a Singaporean tribunal found them guilty of luring the Japanese drug maker to purchase Ranbaxy in 2008 by withholding information. Sun Pharmaceuticals eventually purchased Ranbaxy from Daiichi Sankyo for $3.2 billion.
In February 2018, Malvinder and Shivinder Singh resigned as directors from the board of Fortis Healthcare after the Delhi High Court order upheld the Rs 3,500 crore arbitral award in favour of Daiichi Sankyo.
In September 2018, Shivinder Singh moved the National Company Law Tribunal against Malvinder Singh, accusing him of oppression and mismanagement. In December 2018, Malvinder Singh accused his brother of physical assault.
In March, the Supreme Court had asked the brothers to inform it of how they plan to comply with the order passed by the Singapore tribunal. One of the brothers told the court that his assets could be sold and that he is yet to receive dues of Rs 6,300 crore.
In April, the top court warned the brothers that they would be jailed if found guilty of contempt.
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