Disclose the assets value within 14 days: HC to Singh brothers

NEW DELHI: The Delhi High Court has asked the Malvinder and Shivinder Singh, former promoters of Ranbaxy Laboratories to submit an affidavit declaring their assets value in Ranbaxy Laboratories within two weeks.The court has also allowed Daiichi to access previous asset value declarations made by the Singh brothers.

Meanwhile the court was seen permitting the Singh brothers to sale their holdings in Fortis Healthcare and Religare Finvest, for which the Daiichi Sankyo had filed an application in Delhi court to block them from selling their stakes.

Read also: TPG offers Rs 3000 crore for Fortis stake, Daiichi moves court

Daiichi had approached the Delhi High Court last year, seeking the enforcement of a Rs 2,562-crore Singapore arbitration award against the Singh brothers, as well an additional sum of Rs 1,000 crore in interest payments and lawyers fees, incurred in association with the proceedings.

The April 29, 2016, award comes on the backdrop of actions initiated by Daiichi against the former Ranbaxy promoters in relation to their 2008 purchase of a majority stake in the pharmaceutical enterprise. The Japanese firm has alleged the stake sale was made through concealment and misrepresentation of critical information regarding US Food & Drug Administration and Department of Justice proceedings, which cost Daiichi $500 million in settlement fees in the year 2013, reports Business Standard

After Daiichi's move to Delhi High court, Harish Salve counsel for the respondents, argued that the Malvinder and Shivinder Singh were not selling their holding in but they were raising their further capital in these businesses as it is necessary for value accreditation.

Justice S Muralidhar has directed them to submit the affidavit with all the details of the 17 other respondent's shareholding in such unencumbered asset's case that could instead be considered during the award’s enforcement trial.

Referring a letter that the respondents had filed in the previous hearing, Justice Muralidhar read that the respondents would protect their assets to the extent of the award amount, which the Japanese company claimed had now exceeded Rs 3,500 crore including interest.

“The respondent reiterates assurance given to the court as recorded in a letter dated 24 May 2016," said Justice Muralidhar.

During hearing held on Monday, Daiichi’s counsels CA Sundaram and Arvind Nigam requested the Judge to stop the respondents from selling or diluting their stake in key businesses like Fortis Healthcare and Religare Finvest. They alleged that the respondents were “hiving off ” parts of these assets, arguing that diluting their shareholding would make it difficult for Daiichi to claim its award amount, reports ET

A spokesperson for RHC Holding, the holding company of the Singh brothers, declined to comment, stating that the matter was sub-judice.

The case will be heard next on March 14.

Read also: Ex-Ranbaxy promoters to submit asset declarations to Delhi HC in Daiichi Case