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SC asks ex-Ranbaxy promoters to apprise how they'll comply with Rs 3500 cr arbitral award

Press Trust of India  |  New Delhi 

The Thursday asked former promoters Malvinder Singh and Shivinder Singh to apprise it how they propose to comply with the Rs 3500 crore arbitral award passed against them by a tribunal.

A bench headed by asked the Singh brothers, who were present in the court, to consult their and give a concrete plan on how they will comply with the tribunal's order.

"It is not about individual honour but it doesn't look good for the country's honour. You were the flag bearers of the pharmacare industry and it doesn't look good that you are appearing in court," the bench also comprising justices and said.

The bench asked the Singh brothers to appear before it on March 28 and submit the plan, saying "hopefully it will be the last time you are appearing in the court".

The apex court was hearing the plea of Japanese firm Sankyo which is seeking to recover Rs 3,500 crore, awarded to it by a tribunal in its case against Malvinder and Shivinder Singh.

The Japanese firm, which has filed the contempt plea against the Singh brothers in the apex court, has said that it was promised some shares of Fortis Healthcare by them.

The apex court had earlier refused to pass any interim order on pleas relating to the sale of controlling stakes of Fortis Healthcare to

The top court, on December 14 last year, had ordered status quo with regard to the sale of controlling stakes of Fortis Healthcare.

"Status quo with regard to sale of the controlling stake in Fortis Healthcare to be maintained," the bench had said.

The top court had also issued notices to the Singh brothers asking them to explain as to why contempt proceedings be not initiated against them for allegedly violating its earlier order by pledging the shares.

The board of Fortis Healthcare had approved in July a proposal from IHH Healthcare to invest Rs 4,000 crore by way of preferential allotment for a 31.1 per cent stake.

The became the controlling shareholder of by acquiring a 31.1 per cent stake in the company.

had bought in 2008. Later, it had moved the arbitration tribunal alleging that the Singh brothers had concealed information that was facing probe by the and the Department of Justice, while selling its shares.

had to enter into a settlement agreement with the US Department of Justice, agreeing to pay USD 500 million penalty to resolve potential, civil and criminal liability.

The company had then sold its stake in Ranbaxy to for Rs 22,679 crore in 2015.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, March 14 2019. 12:30 IST
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