Thursday, 10 October 2019

Rs 740-cr fraud: Ranbaxy ex-promoters Malvinder, Shivinder Singh arrested

The misappropriation came to light after an independent forensic audit was conducted by the new board
Shivinder Singh (left) and Malvinder Singh
In an unprecedented development, two industrialist brothers Malvinder and Shivinder Singh, former promoters of the erstwhile pharma giant Ranbaxy and till recently counted among the richest businessmen of the country, were arrested on Thursday for alleged fraud.
While the Economic Offence Wing (EOW) of the Delhi Police arrested Shivinder Mohan Singh early in the day in a case of fraud and misappropriation of funds to the tune of Rs 740 crore linked to Religare Finvest, his elder brother Malvinder Mohan Singh was also taken into custody hours later. Both were former promoters of Religare, Fortis Healthcare and Ranbaxy.
The police were on the lookout for Malvinder Singh through the day, according to sources in the know. Sunil Godhwani, former managing director of Religare, as well as two other key executives Kavi Arora and Anil Saxena, have also been arrested, a statement issued by the EOW said.
“The alleged persons having absolute control on Religare Enterprises Limited (REL) and its subsidiaries put Religare Finvest Limited (RFL) in poor financial condition by way of distributing the loans to the companies having no financial standing and controlled by the alleged persons. These companies wilfully defaulted on repayments, causing a loss to RFL to the tune of Rs 2,397 crore,” the EOW said while confirming the arrests.
The EOW action followed a complaint filed by Religare Finvest, a subsidiary of Religare Enterprises. Religare Finvest had last December 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…

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