Religare Finvest gets relief from appellate tribunal in fund diversion case

Tribunal pulls up Sebi for passing contradicting orders

Religare Finvest, an arm of Religare Enterprises, has obtained relief from the Securities Appellate Tribunal (SAT) in a fund diversion case, involving erstwhile promoters Shivinder and Malvinder Singh.

In an order dated October 17, 2018, the Securities and Exchange Board of India (Sebi) had held that Religare Finvest was liable to pay over Rs 200 crore to Fortis Healthcare, from where the Singh brothers had allegedly siphoned off funds through a layer of companies controlled by them.

The regulator had held that Religare Finvest was beneficiary of this diversion and hence was liable to refund.

In another order dated March 14, 2019, Sebi’s