Delhi court allows settlement talks between Singh brothers and Religare

The Saket district court directs Singh brothers' production on Wednesday, gives time till 2 p.m. to talk to REL, RFL

The Saket district court on Tuesday issued a production warrant for former Religare Enterprises Limited (REL) promoters Malvinder Mohan Singh and Shivinder Mohan Singh in order to facilitate talks between the brothers and REL’s subsidiary Religare Finvest Limited (RFL).

The Singh brothers will be produced before the lower court on Wednesday where they will inform the court on the status of their settlement talk with RFL. They have until 2 PM on Wednesday to talk to RLF, the court said.

The Singh brothers, who are currently lodged in Tihar jail, have last week sought an interim bail of two months for settlement talks. They had been arrested by the Economic Offences Wing (EoW) of the Delhi Police on October 11 in a case of fraud and misappropriation of funds to the tune of Rs 740 crore linked to RFL. The EOW action followed a complaint filed by RFL, a subsidiary of REL.

RFL had filed a criminal complaint against the Singh brothers, Godhwani and others for cheating, fraud and misappropriation of company funds to the tune of Rs 740 crore in December . The misappropriation came to light after an independent forensic audit was conducted by the new board. The audit followed the exit of the Singh brothers from the company in February.

In the complaint, RFL had also said that the Singh brothers and others had cheated the company through misappropriation, siphoning and diversion of funds through a labyrinth of financial transactions. Calling it a “well thought out and organised criminal conspiracy’’ through which a financial scam of huge magnitude had been executed, RFL said the promoters and executives in question had also siphoned off funds from REL, the parent firm. REL was controlled by the warring Singh brothers until February 2018.