Fortis case: Sebi slaps Rs 24 crore penalty on Singh brothers, 7 others

Market regulator the Securities and Exchange Board of India (Sebi) on Tuesday imposed a penalty of Rs 24 crore on nine entities including Malvinder Mohan Singh and Shivinder Mohan Singh for irregularities at Fortis Healthcare. 

The market regulator fined the Singh brothers Rs 5 crore each while their associate company RHC Holdings was fined Rs 2.5 crore. Sebi also banned Malvinder Singh and Shivinder Singh from accessing securities market for a period of three years. 

The case pertains to misappropriation of funds by the erstwhile promoters and their related entities from Fortis Healthcare. 

“It is found that Noticees no 2 (Malvinder) and 3 (Shivinder) deliberately failed to discharge their duties in a manner which was required in the best interest of the listed company and its shareholders,” said Sebi’s in an order.

A penalty of Rs 1 crore has also been imposed on Fortis Healthcare and Rs 50 lakh on Fortis Hospitals for failing to disclose the fraud to the stock exchange, which was a "material event".