NEW DELHI: The Enforcement Directorate (ED) on late Friday started conducting searches at nine premises across the Delhi-NCR region in a money laundering case linked to the alleged diversion of funds worth more than Rs 2,000 crore from Religare Finvest Limited (RFL), a subsidiary company of Religare Enterprises Limited (REL). The raids ended on Saturday.
The nine locations include corporate offices of RFL, M3M India Holdings, RHC Holding Pvt Ltd, Hillgrow Infrastructure Pvt Ltd, Dion Global Solutions and Prius Commercial. Officials at the agency said that incriminating documents, including digital evidence, were seized during the searches and large-scale proceeds of crime generated out of criminal activities have been identified. RFL said its current management had also complained to the ED for initiating a probe.
“We wish to inform that the ED officials, basis a complaint made by the present management of RFL, and pursuant to the ongoing investigation with respect to corporate loan book, collected relevant information/documents on January 5, 2024 to expedite investigation as per request made by RFL recently,” the exchange filing noted.
A Religare spokesperson said they have requested the ED to expedite probe on money siphoned by erstwhile promoters Malvinder Mohan Singh, Shivinder Mohan Singh and their associates and affiliates. “RFL has promised its lenders that they shall make all possible efforts to recover siphoned-off funds and in line with the same, RFL has commissioned a forensic audit to trace assets/money trail,” the spokesperson said.
This request by Religare comes as the current management and the company’s biggest shareholder, the Burman Family, are having a serious rift with each other following the announcement of an open offer by the Burmans in September 2023 to acquire a majority stake in the diversified financial company.
The ED has been investigating Religare and the erstwhile promoters (known as the Singh Brothers) since 2019, following a case by the Delhi Police. The brothers, Sunil Godhwani, former CMD of Religare Enterprises, and other persons were arrested in the same year for defrauding RFL.
The Singh brothers, who once owned Ranbaxy, one of the biggest Indian pharma companies, are accused of siphoning more than Rs 2,000 crore from RFL by disbursing loans to ghost companies and using the money for personal benefits. The brothers are facing other legal proceedings in Indian courts.