The Delhi Police on Thursday arrested ex-promoters of Ranbaxy Shivinder Singh in relation to a Rs 740-crore fraud case. Religare’s former Chief Managing Director Sunil Godhwani and 2 other top company officials have also been held in the financial fraud case. The reports say Delhi Police has also released a lookout notice against Malvinder Singh.
The Economic Offence Wing of the Delhi Police had lodged the case in May this year against the Shivinder Singh and Malvinder following a complaint by Religare Finvest Limited. Enforcement Directorate (ED) had also raided their offices in August. The reports say allegations of cheating, fraud, and misappropriation of funds were leveled against the Singh brothers under the money laundering act by the Enforcement Directorate.
Ranbaxy, a pharmaceutical company worth multi-billion dollars, was started by Shivinder and Malvinder Singh’s father and after his death, they succeeded it. In 2008, they sold the firm to a Japanse company called Daiichi Sankya.
Earlier this year, the Supreme Court had scolded Singh brothers for not obeying Court’s orders to clear all the dues approximately around Rs 3500 crores to Daiichi Sankyo. The Japanese firm has accused that while selling the Ranbaxy, Singh brothers hidden the information that their company was facing an investigation by the US Food and Drug Administration and the Department of Justice.
Singh brothers, who own Fortis Healthcare hospitals and financial services firm Religare Enterprises, also had to lose their ownership rights in both sister companies too.
The Securities and Exchange Board of India (SEBI) had directed Singh brothers to repay Rs 403 crore to Fortis after it was proved that they did a scam and diverted funds from Fortis. It was also proved that they misrepresented financial transactions to cover the whole matter.