Former Fortis Healthcare promoter Malvinder Mohan Singh will have to remain in jail for now, as a Delhi court has denied him bail in a case related to alleged misappropriation of funds at Religare Finvest Ltd (RFL).
Chief Metropolitan Magistrate Gurmohina Kaur on Monday rejected Singh’s bail application on the ground that he was required to be kept in judicial custody for proper investigation in the case.
Malvinder (46) and his brother Shivinder — both former Fortis Healthcare promoters — besides former Religare Enterprises Ltd chairman and managing director Sunil Godhwani (58), former REL chief executive Kavi Arora (48) and former CFO of RFL Anil Saxena were arrested by the Economic Offences Wing (EOW) of the Delhi Police for allegedly diverting RFL's money and investing in other companies.
The EOW had in March last year registered a case after receiving a complaint against Shivinder, Godhwani and others from RFL's Manpreet Suri. In the complaint, Suri alleged that loans were taken by them while managing the firm but the money was invested in other companies.
"They put RFL in a poor financial condition by disbursing loans to companies with no financial standing and controlled by them. The companies to which the loans were disbursed willfully defaulted in repayments and caused a loss to RFL to the tune of Rs 2,397 crore," the police had alleged.
On February 12, the Delhi Police had disputed Malvinder Singh’s claim in the court that he paid back the money to the entities concerned. The police said the money was still with RFL's holding company, RHC, which was controlled by Singh.
On January 29, Religare Finvest had obtained relief from the Securities Appellate Tribunal (SAT) in the fund diversion case involving Shivinder and Malvinder Singh. “We find that the impugned orders cannot be sustained,” the SAT had held after hearing both Religare Finvest and the Securities and Excvhange Board of India (Sebi).
Chief Metropolitan Magistrate Gurmohina Kaur on Monday rejected Singh’s bail application on the ground that he was required to be kept in judicial custody for proper investigation in the case.
Malvinder (46) and his brother Shivinder — both former Fortis Healthcare promoters — besides former Religare Enterprises Ltd chairman and managing director Sunil Godhwani (58), former REL chief executive Kavi Arora (48) and former CFO of RFL Anil Saxena were arrested by the Economic Offences Wing (EOW) of the Delhi Police for allegedly diverting RFL's money and investing in other companies.
The EOW had in March last year registered a case after receiving a complaint against Shivinder, Godhwani and others from RFL's Manpreet Suri. In the complaint, Suri alleged that loans were taken by them while managing the firm but the money was invested in other companies.
"They put RFL in a poor financial condition by disbursing loans to companies with no financial standing and controlled by them. The companies to which the loans were disbursed willfully defaulted in repayments and caused a loss to RFL to the tune of Rs 2,397 crore," the police had alleged.
On February 12, the Delhi Police had disputed Malvinder Singh’s claim in the court that he paid back the money to the entities concerned. The police said the money was still with RFL's holding company, RHC, which was controlled by Singh.
On January 29, Religare Finvest had obtained relief from the Securities Appellate Tribunal (SAT) in the fund diversion case involving Shivinder and Malvinder Singh. “We find that the impugned orders cannot be sustained,” the SAT had held after hearing both Religare Finvest and the Securities and Excvhange Board of India (Sebi).
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%