The Enforcement Directorate on Thursday arrested pharmaceutical giant Ranbaxy Laboratories’ former promoter Malvinder Singh in connection with a money laundering case for alleged misappropriation of funds of Religare Finvest Limited, PTI reported. Singh along with his brother Shivinder Singh and three others were arrested by the Delhi Police in the same case last month, and are currently lodged in Tihar jail.
The central agency also took another accused Sunil Godhwani, the former chief managing director of Religare Enterprises Limited, into custody from the prison. The arrested will appear before a metropolitan magistrate in the prison, and the Enforcement Directorate is expected to seek their custody for interrogation.
Malvinder Singh and Godhwani have been charged under sections of the Money Laundering Act, the Enforcement Directorate said.
Religare Finvest filed a criminal complaint with the Economic Offences Wing of the Delhi Police against the Singh brothers in December 2018.
The 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.
The Singh brothers resigned in February 2018 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.
The Supreme Court had in March asked the two brothers to inform it how they were planning to follow the order of the Singaporean tribunal. A month later, the top court warned the brothers that they would be jailed if found guilty of contempt.
The Economic Offences Wing had in March registered a first information report against the Singh brothers and three others after Religare Finvest alleged that loans were taken by them while managing the firm but the money was invested in other companies.