Fortis fraud probe: SFIO to summon promoters Malvinder & Shivinder Singh

Fortis promoters Malvinder Singh and Shivinder Singh will soon recieve summons from Serious Fraud Investigation Office (SFIO) in connection with alleged financial irregularities at Fortis Healthcare and Religare Enterprises, according to a report.

Citing sources, DNA reports that SFIO began a probe into the matter on Monday and has 3 months time to complete the investigation.

“We will analyse the documents and then summon the Singh brothers,” the report quoted SFIO sources as saying. 

The corporate affairs ministry ordered the probe under Section 212 of the Companies Act following reports that the Fortis Healthcare promoters took at least $78 million out of the company without any board approval about a year ago.

A Religare spokesperson had earlier said the company has not received any communication, written or otherwise, from any government authority with regard to such a purported investigation.

"As such we have no knowledge of any investigation against the company," the spokesperson said in a statement.

In a filing to the National Stock Exchange, Fortis Healthcare said it "has not received any communication, written or otherwise, from any government authority with regard to such a purported investigation".

The Singh brothers are promoters of both the companies. Earlier this month, they stepped down from the boards of the two firms.

The SFIO, under the ministry, mainly probes white collar crimes.

Fortis Healthcare has also come under the lens of markets regulator Sebi, which launched an investigation into the alleged regulatory lapses.

On Saturday, Fortis informed the exchanges that Sebi, which has instituted an investigation, has sought information and documents by February 26.

Sebi Chairman Ajay Tyagi, on February 10, said that the regulator was examining the Fortis issue. "We also received a reference on Religare from somewhere I cannot disclose and it will be looked into," he had said.