Daiichi case: HC tells Singh brothers to disclose stake in group entities

Daiichi can access previous asset declarations by Singh Brothers on affidavit of confidentiality

The Delhi High Court on Monday asked former Ranbaxy promoters Malvinder and Shivinder Singh to file an affidavit on or before February 8 on the value of unencumbered shareholding of the brothers in various group entities. The court also allowed Daiichi to access previous asset declaration by the Singh brothers provided an affidavit of confidentiality is submitted.

In one of the arguments made by Advocate Harish Salve, who represented the Singh brothers, mentioned that the Singh brothers do not have plans to sell Finvest. On the other hand C A Sundaram and Arvind Nigam, advocated for Daiichi said that 80 per cent of 63 per cent that is owned by Singh brothers are already secured with other lenders.

The Delhi High Court will hear the matter next on 14th of March.

Malvinder Singh and Shivinder Singh, former promoters of Ranbaxy Laboratories Ltd, submitted before the Delhi High Court at the previous hearing argued that capital infusion was necessary to run the multi-million dollar conglomerate company. In August last year, the company had passed an approval with shareholder consent, enabling the enterprise to raise the requisite funds for the sustainable operation of the enterprise in the backdrop of the Rs 2,562 crore penalty that the Singapore arbitral tribunal had awarded in favour of Daiichi Sankyo.

Daiichi has alleged the concealment and misrepresentation of critical information regarding US Federal Drug Administration and Department of Justice proceedings against Ranbaxy, which cost the former $500 million in settlement fees in 2013, after their acquisition of Ranbaxy Laboratories.