New Delhi: Delhi Police on Thursday night arrested ex-Ranbaxy and Fortis Healthcare promoter Malvinder Mohan Singh on grounds of cheating, fraud and misappropriation of funds. His arrest came just hours after his younger brother Shivinder was arrested by the police on the same grounds.
The brothers had been raided by the Enforcement Directorate (ED) in August. Besides the two, four others have also been arrested by the police.
According to reports, the Economic Offenses Wing (EOW) of the Delhi Police took the action after discovering several irregularities based on a complaint filed in December 2018 by Religare Enterprises Ltd (REL), a subsidiary of Religare Finvest Ltd (RFL), an investment firm founded by Shivinder and his brother Malvinder Mohan Singh.
REL had accused the Singh brothers of diverting funds and misappropriation of assets to the tune of nearly Rs 740 crore. The complaint also listed former CMD Sunil Godhwani, among other directors in the fraud case.
Interestingly, REL was set up after the brothers sold Ranbaxy pharmaceuticals to the Japanese drug manufacturer Daiichi Sanyo. It has also been suspected that they used the money made from the sale of Ranbaxy to build a chain of healthcare facilities under Fortis and Religare.
In September 2018, Shivinder filed a case against his elder brother alleging ‘oppression’ and ‘mismanagement.’ In February that year, they resigned from the board of Fortis Healthcare after the Delhi High Court, in 2017, turned down their plea against an international arbitration tribunal decision asking them to pay Rs 2,562 crore to Daiichi.
The Japanese firm had approached the tribunal, in Singapore, accusing the brothers of concealing the information, while selling Ranbaxy, that the company was under investigation by the US Food and Drug Administration and the Justice Department.
Last year, the Supreme Court, too, turned down their plea against the arbitration’s decision and warned it would send them to jail if they didn’t pay.