Settlement Talks Between Singh Brothers, Religare Inconclusive
The settlement talks between former Fortis Healthcare promoters Malvinder Singh and his brother, Shivinder and scam-hit Religare Finvest Ltd remained inconclusive as no proposal was given, a Delhi court was informed on Wednesday, 23 October, according to PTI.
The counsel for jailed Singh brothers, arrested for allegedly misappropriating funds of RFL, told the court that it was not possible to come up with a proposal as the accused would have to sit together and discuss the issue.
The Singh brothers on Friday sought interim bail from the court saying they wanted to settle the case with the complainant.
The court had on Thursday sent Singh brothers and other accused – Sunil Godhwani, Kavi Arora and Anil Saxena – to judicial custody till 31 October.
What Is the Case All About?
Religare Finvest Limited is a subsidiary of Religare Enterprises Limited. Shivinder and his elder brother Malvinder were promoters of REL.
The EOW had registered an FIR in March after it received a complaint from Manpreet Singh Suri of RFL against Shivinder, Godhwani and others, alleging they siphoned money from the company and granted loans to companies of their choosing.
According to police, the complainant stated that the four had absolute control over REL and its subsidiaries, which allowed them to do this.
"They put RFL in poor financial condition by disbursing loans to companies having no financial standing and controlled by them. The companies to which loans were disbursed willfully defaulted in repayments and caused loss to RFL to the tune of Rs 2,397 crore," Additional Commissioner of Police (Economic Offences Wing) OP Mishra had said.
This was also pointed out and flagged during an independent audit by Reserve Bank of India and Securities and Exchange Board of India (SEBI). "The alleged persons systematically siphoned and diverted money of general public in a clandestine manner for their own benefit," Mishra added.
The relationship between the Singh brothers, who were erstwhile promoters of Fortis and Ranbaxy, had turned sour after allegations of fund diversion from the healthcare chain emerged along with other charges of financial impropriety. Ranbaxy was established by their grandfather Bhai Mohan Singh.
(With inputs from PTI, BloombergQuint and ANI)