Delhi High Court asked former Ranbaxy promoter Malvinder Singh to deposit the sale proceeds of around S$3.5 million of his shareholding in Singapore-listed Religare Health Trust within four weeks.
Cracking the whip for disobeying its order passed in February, the Delhi High Court on Wednesday asked former Ranbaxy promoter Malvinder Singh to deposit the sale proceeds of around S$3.5 million of his shareholding in Singapore-listed Religare Health Trust within four weeks.
Justice Rajiv Shakdher also barred Malvinder and his brother Shivinder Singh from moving any assets abroad and also directed freezing of their shares in Best Healthcare, which owns the Fortis trademark.
It also directed the release of Rs 9.38 crore received by them from the sale of their shares in listed companies towards part payment of Japanese pharma major Daiichi Sankyo’s `3,500-crore arbitral award against the brothers.
Justice Shakdher said undoubtedly there has been disobedience of the court’s previous directions by Malvinder, who along with his brother Shivinder Singh, was directed not to sell their assets.
The HC also asked Malvinder to furnish all the details with regard to sale like who mandated the share sale, communications that took place, broker details, actual sale value, etc.
The court’s order came after it was informed by the counsel for Malvinder, who was present in the court, that his 45 lakh equity shares in Religare Healthcare Pvt Ltd were sold in Singapore in April.
The judge also said that the sale of shares “would not have come out, had we not asked for the bank statements”.
The court’s order came on a petition of Japanese pharma major Daiichi Sankyo, which had come to the high court seeking execution of the Rs 3,500-crore Singapore tribunal arbitral award won by it in April 2016.
Daiichi’s counsel contended that Malvinder was in contempt of the court’s February 19 directions by which the two brothers were directed to maintain status quo on the assets they have disclosed during the case.
The court, however, asked Daiichi to file an affidavit stating that if orders are passed in future to re-deposit the money, it will be complied with.
The court turned down the plea of several private banks, including Yes Bank and Axis Bank, to whom the Singh brothers owned money, that some amount shall be released to them also as the DRT has passed attachment order in their favour.
As is known, a Singapore tribunal had in April 2016 passed the award in Daiichi’s favour holding that the brothers had concealed information that their company was facing probe by the US Food and Drug Administration and the Department of Justice while selling its shares.
The high court on January 31 had upheld the international arbitral award passed in the favour of Daiichi and paved the way for enforcement of the 2016 tribunal award against the brothers who had sold their shares in Ranbaxy to Daiichi in 2008 for Rs 9,576.1 crore. Sun Pharmaceuticals Ltd had later acquired the company from Daiichi.
Daiichi had moved the high court seeking direction to the brothers to take steps towards paying its Rs 3,500 crore arbitration award, including depositing the amount. It had also urged the court to attach their assets, which may be used to recover the award.
On February 16, the Supreme Court had dismissed Singh brothers’ appeal against the high court verdict upholding the international arbitral award.