MUMBAI/NEW DELHI: THE Securities and Exchange Board of India (SEBI), in an order on Thursday, said investigations prima facie proved Religare Finvest and Religare Enterprises had diverted funds amounting to Rs 2,315.09 crore to ultimately benefit former promoters Shivinder Mohan Singh and Malvinder Mohan Singh.
SEBI said notices have been issues to the concerned on the basis of the forensic audit that revealed funds diversion. It has also asked Religare Finvest and Religare Enterprises to recall the loans in the interest of the investors. While giving 21-days time for response, SEBI has ordered that the entities shall not dispose off any assets or divert funds without its approval. Further, it said Malvinder and Shivinder Singh shall not associate themselves with the affairs of both the companies involved in any manner till further directions.
Separately, hearing a contempt plea filed by Japanese pharmaceutical firm Daiichi Sankyo, the Supreme Court on Thursday asked the Singh brothers, who were also former promoters of Fortis Healthcare, to explain how they would honour the over Rs 3,500 crore award as ruled by a Singaporean Arbitration Tribunal in the drugmaker’s favour.
Daiichi had moved court for securing over Rs 3,500 crore of the foreign arbitration award in its favour. It had also got the stake sale of Fortis Hospital to IHH Healthcare Berhad, Malaysia, stopped by way of an interim order from the apex court. The Fortis Healthcare Board had, in July 2018, approved a proposal from IHH Healthcare to invest Rs 4,000 crore by way of preferential allotment for 31.1 per cent stake.
The Supreme Court bench headed by Chief Justice Ranjan Gogoi also pulled up Shivinder, saying that since he is no more a ‘Sadhu’ now, he should start thinking about how to pay back the money.
Senior advocate Fali S Nariman, representing Daiichi, told the bench that while Malvinder claims he is trying to pay off all debts, Shivinder says he has become a Sadhu.
On this, CJI Gogoi told Shivinder, “You are telling us that you have nothing to do with business anymore and that your brother is looking after it since you have renounced the world. If you have a debt to pay, your renouncing the world wouldn’t matter to us.”
When Shivinder’s lawyer PS Patwalia said that “Mr Shivinder has come back to the world in December 2017,” the CJI retorted, “Oh! That’s good. Now that your lawyer says you’ve come back to the world, start thinking about money.”
The top court further asked the Singh brothers to sit with their accountants and figure out a way to pay off their debts and honour their commitments.