In a big setback to Religare Enterprises promoters Malvinder and Shivinder Singh, Delhi High Court on Wednesday allowed Daiichi Sankyo Co. to collect Rs 3,500 crore award money from former Ranbaxy promoters, Bloomberg reported. The single-judge bench of Justice Jayant Nath of the Delhi High Court pronounced the verdict and rejected all observations raised by the brothers, Bloomberg said. Delhi High Court maintained that the arbitration award by a Singapore tribunal which found the Singh brothers concealed critical information during the sale of their generic drug firm, Ranbaxy Laboratories Ltd., to Daiichi in 2008 is in line with the laws and policy of India. The brothers had contested the contested the earlier ruling pronounced against them in Singapore court. They even opposed implementation of the award in India.
Shares of Religare Enterprises Ltd., also controlled by the brothers fell 4.3 percent to Rs 43.20, their lowest level since November 14 while Fortis Healthcare declined 5.3 percent. Sensex dropped 0.2 percent.
India’s billionaire Singh brothers were accused of “diversion, siphoning and digression of assets” by a New York-based investor in a lawsuit filed in the High Court of Delhi.The lending arm of Malvinder and Shivinder Singh’s publicly traded financial services firm, Religare Enterprises Ltd., made 21 loans to a number of seemingly independent companies that routed at least $300 million back to privately held Singh firms on the same day, according to a central bank investigation of the company’s fiscal 2016 books filed as part of the 700-page suit in November. The suit alleged that the Singhs diverted the lender’s funds to aid them with a personal debt load of about $1.6 billion, which is forcing the sale of chunks of their empire that includes Religare and Fortis Healthcare Ltd., India’s second-largest hospital chain.