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Daiichi versus Singh Brothers: Daiichi Sankyo demands third party Audit

Daiichi versus Singh Brothers: Daiichi Sankyo demands third party Audit

Japanese firm Daiichi Sankyo wants a third party auditor inspect the financial details disclosed by former owners of Ranbaxy Malvinder Singh and Shivinder Singh

NEW DELHI: The legal battle between Japanese firm Daiichi Sankyo and  former owners of Ranbaxy has taken a new move. In its recent application of Daiichi Sankyo, the Japanese firm has urged the Delhi High Court to include a third party auditor to  inspect the financial details disclosed by former owners of Ranbaxy.

Daiichi has stated in its application that the third party auditor will also inspect the other 17 respondents and their shareholding in such unencumbered asset’s case along with the details disclosed in sealed covers by Malvinder and Shivinder Singh.

Meanwhile, Harish Salve counsel for the Singhs’ has objected over the Daiichi’s application for third party auditor in the Court during their latest hearing.

Speaking over the said application filed by Daiichi Sankyo, a spokesperson for RHC Holding Pvt Ltd, the holding company for the Singhs, told ET, “We will be filing our reply to the application. The matter is sub-judice and we cannot offer further comments.”

“Daiichi Sankyo needs third party auditors to review the financials filed by the respondent and their auditor to determine their veracity and accuracy. The earlier CA certificates filed by the respondents pursuant to the court’s orders were found to be containing discrepancies and were inaccurate,” Nikhil Nayyar, lawyer-on-record for Daiichi Sankyo.

“Daiichi Sankyo shall pursue the respondents/sellers and purchasers in High Court to ensure compliance with the court’s orders (which prohibit any change in the status of their assets), including by way of contempt of Court,” he said.

Medical Dialogues had earlier reported that in year 2013, Daiichi filed an arbitration case in Singapore against the Indian promoters, for misrepresentation and concealment of facts, the Singapore International Arbitration Centre (SIAC), provider of neutral arbitration services to the international business community, issued a decree against the Singh brothers. In that matter, an arbitration court in Singapore directed former promoters of Ranbaxy laboratories Ltd, Malvinder Mohan Singh and Shivinder Mohan Singh to pay damages worth Rs.2,562.78 crore to Japan’s Daiichi Sankyo Co. Ltd.

Further to this, Daiichi Sankyo moved Delhi High Court in order to block the former Ranbaxy owners Malvinder and Shivinder Singh’s to sell any of their stakes in Fortis Healthcare and allied subsidiaries.

Daiichi also alleged that the Singh brothers have not obeyed the court’s order as it had directed them to submit the details of their assets value  that can be considered during the award’s enforcement trial.

Read also: Daiichi again moves to Court to Block Fortis Stake Sale

Nayyar said that Daiichi may also file for contempt of court if the Singhs are found parting with the assets it seeks to recover as part of its award.

Read also: Daiichi versus Singh Brothers: Fresh Series of Allegation pile up

 

Source: With inputs
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