Fortis files suit to recover Rs 520 crore from Malvinder, Shivinder Singh

In October, the Sebi had directed Fortis to take necessary action to recover Rs 403 cr from Singh brothers

Hospital major Fortis Healthcare has filed a civil suit against its former promoters — brothers Malvinder Singh and Shivinder Singh — and other entities to recover Rs 520 crore from them. The lawsuit was filed in the Delhi High Court on Tuesday.

The Gurugram-headquartered firm confirmed the development. “Fortis Hospitals has filed a suit against Best Healthcare, Fern Healthcare, Modland Wears, Malvinder Mohan Singh, Shivinder Mohan Singh and certain other entities... The suit is sub-judice. At present, we have no further comments,” the company said. 

Malvinder and Shivinder Singh could not be reached for comment. 

In October, the Securities and Exchange Board of India (Sebi) had directed Fortis to take necessary action to recover Rs 403 crore from Singh brothers along with due interest within 90 days. They had allegedly siphoned off the amount from the company.

The Sebi order had also named other entities including RHC Holding, Shivi Holdings, Malav Holdings, Religare Finvest, Best Healthcare, Fern Healthcare and Modland Wears.

The order came after an investigation by the market regulator found that funds were being diverted to entities related to the former promoters. 

Japanese drugmaker Daiichi Sankyo had moved the Delhi High Court seeking Rs 3,500 crore from the brothers and asked the court for direction in the matter. Daiichi had won an arbitration award in a Singapore tribunal which asked the brothers to pay Rs 3,500 crore to the drugmaker. 

In the first week of August, the Enforcement Directorate had searched the residences of former promoters in New Delhi in connection with a money laundering case.