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Ranbaxy Case: Singh Brothers diverted funds despite SC orders, alleges Daiichi


Ranbaxy Case: Singh Brothers diverted funds despite SC orders, alleges Daiichi

“Their nearly Rs 6,300 crore has been syphoned off by some ‘baba’. These children have been duped,” Kapil Sibal had said, adding that let the properties of the contemnor be sold under the instruction of the court.

New Delhi: Japanese firm Daiichi Sankyo told the Supreme Court Thursday that former Ranbaxy promoters, Malvinder and Shivinder Singh who owe it Rs 4,000 crore, have diverted funds despite several orders asking them to maintain their stakes in Fortis Healthcare Ltd. A bench comprising Chief Justice Ranjan Gogoi and Justices Deepak Gupta and Sanjiv Khanna reserved order on Daiichi’s contempt plea against the former Ranbaxy promoters and others.

Senior advocate F S Nariman, appearing for Daiichi, alleged that the Singh brothers diverted funds despite several orders by the Supreme Court to maintain their stake in Fortis Healthcare Ltd.

Read Also: Supreme Court to directly hear contempt petition-Jail Singh Brothers if found guilty of non payment

He said that they reduced their stakes in Fortis Healthcare Holding from more than 40 per cent on August 11, 2017, to less than 1 per cent now.

The apex court had earlier expressed displeasure at the replies of Malvinder and Shivinder to its directive to submit a plan for paying Rs 4,000 crore to Daiichi Sankyo, as awarded by a Singapore tribunal.

It had threatened to send them to jail if found that they have violated the apex court’s order.

Read Also: Singh Brothers booked under IPC 420 for Rs 2397 crore fraud

On March 14, the Supreme Court asked them to submit a concrete plan for paying Rs 4,000 crore to Daiichi Sankyo as directed by a Singapore tribunal and had asked them to consult their accountants as also financial and legal advisors and appraise it by today.

The bench considered the submissions of the lawyers representing Malvinder and Shivinder on their plans to give money for honouring the arbitral award.

Read Also: Singh Brothers booked under IPC 420 for Rs 2397 crore fraud

“Their nearly Rs 6,300 crore has been syphoned off by some ‘baba’. These children have been duped,” Kapil Sibal had said, adding that let the properties of the contemnor be sold under the instruction of the court.

The Japanese firm has filed a contempt plea against the Singh brothers, saying that it was promised some shares of Fortis Healthcare by them and sought the recovery of Rs 3,500 crore as directed by the tribunal.

The top court, on December 14 last year, had ordered status quo with regard to the sale of controlling stakes of Fortis Healthcare.

Read Also: How will you pay Rs 3500 crore arbitral award to Daiichi: Supreme Court asks Singh Brothers

The board of Fortis Healthcare had approved in July a proposal from IHH Healthcare to invest Rs 4,000 crore by way of preferential allotment for a 31.1 per cent stake.

The Malaysian IHH Healthcare Bhd became the controlling shareholder of Fortis Healthcare Ltd by acquiring a 31.1 per cent stake in the company.

Daiichi had bought Ranbaxy in 2008. Later, it had moved the Singapore arbitration tribunal alleging that the Singh brothers had concealed information that Ranbaxy was facing a probe by the US Food and Drug Administration and the Department of Justice while selling its shares.

Read Also: Fortis Healthcare petitions SEBI seeking arrest of Singh brothers

Daiichi had to enter into a settlement agreement with the US Department of Justice, agreeing to pay USD 500 million penalties to resolve potential, civil and criminal liability.

The company had then sold its stake in Ranbaxy to Sun Pharmaceuticals for Rs 22,679 crore in 2015.

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MD Team

MD Team

At Medical Dialogues, we are a team of young professionals strongly advocating of the transparency in the medical sector through the free flow of medical information, health and medical news. MD Team covers a variety of news related to the healthcare, pharma and medical device industry in India. Our team can be contacted at editorial@medicaldialogues.in Contact no. 011-43720751


Source: PTI
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