Singh brothers resign from board of Religare Enterprises

New Delhi: Diversified financial services firm Religare Enterprises said Malvinder Mohan Singh and Shivinder Mohan Singh have resigned from the company's board with effect from February 14, 2018.

"Malvinder Mohan Singh and Shivinder Mohan Singh have stepped down from the board of directors with effect from February 14, 2018," Religare Enterprises said in a regulatory filing informing about the changes in the composition of the board of directors of the company without giving any reasons.

Religare Enterprises is the promoter of Fortis Healthcare and the two brothers had resigned from the board of directors of the latter last week following a Delhi High Court order upholding Rs 3,500 crore arbitral award in favour of Japan Daiichi Sankyo.

The resignation is intended to free the organization from any encumbrances that may be linked to the promoters, Fortis Healthcare had said.

Fortis Healthcare has issued notices by the stock exchanges following a media report claiming that the company's promoters, the Singh brothers, took at least USD 78 million (about Rs 500 crore at current exchange rate) out of the publicly-traded hospital company they control without board approval about a year ago.

The Delhi High Court had on January 31 upheld an international arbitral award of Rs 3,500 crore passed in favour of Japanese pharma major Daiichi Sankyo, which has alleged that the former promoters of India's Ranbaxy Laboratories had concealed information about proceedings against them by American food and drug department.

Earlier, a tribunal in Singapore had passed the verdict in favour of Daiichi holding that the former Ranbaxy promoters and brothers, Malvinder and Shivinder, had concealed information that the Indian company was facing a probe by the US Food and Drug Administration and the Department of Justice while selling its shares.

Religare also announced its third-quarter earnings and posted a net loss of Rs 41.67 crore. There was a net loss of Rs 43.27 crore in the same quarter of 2016-17.

Total income of the company stood at Rs 7.96 crore for the quarter, slightly up from Rs 7.64 crore in the same period a year ago.