Religare Finvest launches probe on alleged fraud by former promoter

Religare Finvest Limited (RFL), the wholly owned NBFC subsidiary of Religare Enterprises, has commissioned an investigation into alleged siphoning-off of funds from RFL by erstwhile promoters Malvinder Singh and Shivinder Singh, it said in an exchange notice.

“Pursuant to the terms agreed with respect to the recovery proceeds of CLB (corporate loan business) portfolio and FDs misappropriated by Lakshmi Vilas Bank (LVB) (now DBS), under the Upside Sharing Agreement signed by RFL with the lenders, it is imperative for RFL to keep pursuing recovery of the siphoned off funds,” it said.

Accordingly, to aid RFL to recover such funds, RFL has commissioned the investigation.