 "Daiichi seeks external auditor to scrutinise Singh brothers' assets")
Daiichi Sankyo approached Delhi high court on Wednesday for an external auditor to scrutinise assets of former Ranbaxy promoters Malvinder Singh and Shivinder Singh. The application seeks to determine whether the Singh brothers can pay the Rs 2,562-crore Singapore arbitration award to the Japanese pharmaceutical major.
Wednesday’s move follows Daiichi’s allegations of false asset declarations by Singh brothers in affidavit. Claiming a Rs 1,500 discrepancy between the affidavit and reports of Singh brothers’ RHC Holding, Daiichi stated that most of the former Ranbaxy promoters’ assets are unrealisable, encumbered (with debt), and of related and unlisted parties. The Japanese company has also mentioned undertakings by Singh brothers that two of their companies (RHC Holding and Oscar Investments) had sufficient funds to pay the arbitration award.
Responding to Daiichi’s latest plea, lawyer Harish Salve, on behalf of Singh brothers, requested the court for a proper hearing before passing any orders. Taking note, the court asked Singh brothers to file their response and listed the matter for April 17.
The court also asked the former Ranbaxy promoters to give a written reply to a Daiichi envelope alleging discrepancy. On March 6, the court had directed Singh brothers to inform the court before parting with any of their debt-free assets. The April 2016 arbitral award, along with a claim of Rs 1,000 crore in interest and lawyers’ fees, comes after actions by Daiichi against the former Ranbaxy promoters in relation to a 2008 purchase of a majority stake by the Japanese firm in Ranbaxy.
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