 "Delhi HC orders Malvinder Singh to deposit $2.5 mn in Daiichi's account")
The Delhi High Court pulled up Malvinder Mohan Singh on Wednesday for selling his shares in Religare Healthcare for Singapore $3.5 million (approximately $2.47 million) instead of paying up Daiichi Sankyo. Malvinder has been asked to deposit the money in Daiichi’s account.
The court said that by selling the shares, Malvinder disobeyed its order that barred him from selling unencumbered assets. The order came after the court was informed by Malvinder’s counsel that 4,500,000 equity shares in Religare Healthcare were sold in April. The court has also attached all shares of companies that have the Fortis trademark.
In April 2016, a Singapore tribunal had passed the award in Daiichi’s favour, holding that the brothers had concealed information that their company was facing probe by the US Food and Drug Administration and the Department of Justice, while selling its shares. Daiichi had moved the Delhi High Court to enforce this arbitration amount. In February, the court had upheld the arbitration award.
The brothers had sold Ranbaxy to Daiichi in 2008 for Rs 9,5.76 billion. Sun Pharmaceuticals had later acquired the company from Daiichi. Fortis Healthcare, in which the brothers were promoters, has now been sold, too.
In August, the Delhi High Court issued a restraining order on the brothers from operating their bank accounts in India or abroad and selling any property.
The brothers, on Wednesday, asked the court to reconsider the order on attaching their bank accounts, but the court did not consider that matter.
Shivinder, Malvinder's younger brother, was being represented by a different legal counsel on Wednesday. On Tuesday, Shivinder had filed a case against his elder sibling in the National Company Law Tribunal (NCLT) and had cut all business ties with him. Shivinder accused Malvinder of “oppression” and mismanagement of RHC Holding, Religare and Fortis, and also named Sunil Godhwani, former head of Religare, in his complaint.
The brothers have been embroiled in controversies since the past few years, leading to the stock market regulator launching investigations into financial irregularities in their companies.
The court said that by selling the shares, Malvinder disobeyed its order that barred him from selling unencumbered assets. The order came after the court was informed by Malvinder’s counsel that 4,500,000 equity shares in Religare Healthcare were sold in April. The court has also attached all shares of companies that have the Fortis trademark.
In April 2016, a Singapore tribunal had passed the award in Daiichi’s favour, holding that the brothers had concealed information that their company was facing probe by the US Food and Drug Administration and the Department of Justice, while selling its shares. Daiichi had moved the Delhi High Court to enforce this arbitration amount. In February, the court had upheld the arbitration award.
The brothers had sold Ranbaxy to Daiichi in 2008 for Rs 9,5.76 billion. Sun Pharmaceuticals had later acquired the company from Daiichi. Fortis Healthcare, in which the brothers were promoters, has now been sold, too.
In August, the Delhi High Court issued a restraining order on the brothers from operating their bank accounts in India or abroad and selling any property.
The brothers, on Wednesday, asked the court to reconsider the order on attaching their bank accounts, but the court did not consider that matter.
Shivinder, Malvinder's younger brother, was being represented by a different legal counsel on Wednesday. On Tuesday, Shivinder had filed a case against his elder sibling in the National Company Law Tribunal (NCLT) and had cut all business ties with him. Shivinder accused Malvinder of “oppression” and mismanagement of RHC Holding, Religare and Fortis, and also named Sunil Godhwani, former head of Religare, in his complaint.
The brothers have been embroiled in controversies since the past few years, leading to the stock market regulator launching investigations into financial irregularities in their companies.
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