Business Medical Dialogues
    • facebook
    • twitter
    Login Register
    • facebook
    • twitter
    Login Register
    • Medical Dialogues
    • Speciality Dialogues
    • Education Dialogues
    • Medical Jobs
    • Medical Matrimony
    • MD Brand Connect
    Business Medical Dialogues
    • News
        • Financial Results
        • Hospitals & Diagnostics
        • IT / Health Venture
        • Implants / Devices
        • Insurance
        • Key Movement
        • Pharmaceuticals
        • Policy
        • Technology
        • pharma-news
    • blog
    LoginRegister
    Business Medical Dialogues
    LoginRegister
    • Home
    • News
      • Financial Results
      • Hospitals & Diagnostics
      • IT / Health Venture
      • Implants / Devices
      • Insurance
      • Key Movement
      • Pharmaceuticals
      • Policy
      • Technology
      • pharma-news
    • blog
    • Home
    • Editors Pick
    • Ex-Ranbaxy owners to...

    Ex-Ranbaxy owners to pay Rs 2,600 Crores to Daiichi for concealing facts

    Written by Geeta Sharma Sharma Published On 2016-05-06T12:32:28+05:30  |  Updated On 16 Aug 2021 4:27 PM IST
    Singapore: An arbitration court in Singapore has 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. The directive comes in the face of having concealed facts when they sold their 34.82% stake in Ranbaxy, to the latter for $2.4 billion in 2008. The deal when it took place was valued at $ 4.6 billion.

    The concealment of facts came to light during a US Food and Drug Administration (FDA) investigation of Ranbaxy processes. In 2013, when Daiichi filed an arbitration case in Singapore against the Indian promoters, for misrepresentation and concealments 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. The Daiichi Sankyo Co Ltd, had filed this case seeking compensation for the losses that it had been forced to pay the US Department of Justice.

    Malvinder Singh, the senior of the two promoters, refused to comment while, RHC Holdings, a respondent and mediator through whom the transaction had met culmination said that the dua may challenge the decree. The press release issued by the respondent stated that as go- betweens they had ruled in favour of Daiichi. However, Daiicchi Sankyo did not come forth with any reactions.

    In 2013, Ranbaxy now owned by the Daiichi's management, in order to get away after pleading guilty to criminal charges by the USFDA and the US. Department of Justice, paid a fine of $500 million. The charges against the company then had been of "falsifying data" and "concealing and misrepresenting" in the processes of manufacturing and distribution of drugs, in the factories at Paonta Sahib (Himachal Pradesh) and Dewas (Madhya Pradesh) reports
    live mint
    .

    The USFDA on the other hand banned Ranbaxy products manufactured in the Indian plants at Mohali (Punjab), Dewas, Paonta Sahib and Toansa (Punja) from entering the US. The company went into a mediation mode with the USFDA immediately. Arun Sawhney, who headed Ranbaxy from 2008 to 2015, feigned ignorance to the whole episode.

    Since the arbitration was conducted under the New York convention in Singapore, Daiichi is at liberty to enforce the decree anywhere in the world, stated a source following legal developments . As the Singh duo is personally accountable for the developments, Daiichi can redress an Indian court to enforce the award. It can even recover its losses by having the two brothers sell their assets.

    The verdict in the case comes as a face saver, giving confidence to investors to continue investing in the Indian pharmaceutical industry; and giving pellucidity to the investment scenario in India .

    Arun SawhneyDaiichi Sankyo Co LtdMalvinder Mohan SinghRanbaxy laboratories LtdShivinder Mohan SinghSIACSingapore International Arbitration CentreUS Food and Drug AdministrationUSFDA
    Source : Inputs from live mint

    Disclaimer: This site is primarily intended for healthcare professionals. Any content/information on this website does not replace the advice of medical and/or health professionals and should not be construed as medical/diagnostic advice/endorsement or prescription. Use of this site is subject to our terms of use, privacy policy, advertisement policy. © 2020 Minerva Medical Treatment Pvt Ltd

    Geeta Sharma Sharma
    Geeta Sharma Sharma
      Show Full Article
      Next Story
      Similar Posts
      NO DATA FOUND

      Popular Stories

      • Email: info@medicaldialogues.in
      • Phone: 011 - 4372 0751

      Website Last Updated On : 13 Oct 2022 5:14 AM GMT
      Company
      • About Us
      • Contact Us
      • Our Team
      • Reach our Editor
      • Feedback
      • Submit Article
      Ads & Legal
      • Advertise
      • Advertise Policy
      • Terms and Conditions
      • Privacy Policy
      • Editorial Policy
      • Comments Policy
      • Disclamier
      Medical Dialogues is health news portal designed to update medical and healthcare professionals but does not limit/block other interested parties from accessing our general health content. The health content on Medical Dialogues and its subdomains is created and/or edited by our expert team, that includes doctors, healthcare researchers and scientific writers, who review all medical information to keep them in line with the latest evidence-based medical information and accepted health guidelines by established medical organisations of the world.

      Any content/information on this website does not replace the advice of medical and/or health professionals and should not be construed as medical/diagnostic advice/endorsement or prescription.Use of this site is subject to our terms of use, privacy policy, advertisement policy. You can check out disclaimers here. © 2025 Minerva Medical Treatment Pvt Ltd

      © 2025 - Medical Dialogues. All Rights Reserved.
      Powered By: Hocalwire
      X
      We use cookies for analytics, advertising and to improve our site. You agree to our use of cookies by continuing to use our site. To know more, see our Cookie Policy and Cookie Settings.Ok