Not running away, say Ranbaxy ex-promoters

By: | Published: February 23, 2018 6:36 AM

Under pressure, Singh brothers — Malvinder and Shivinder — on Thursday said they were “not going anywhere”, as they face payment of Rs 3,500-crore arbitration award to Daiichi Sankyo and a probe into alleged financial irregularities at Fortis Healthcare and Religare Enterprises.

Ranbaxy, Religare Enterprises, Fortis Healthcare, SFIO, Singh brothers, Malvinder Mohan Singh, Axis Bank, yes bankIn their resignation letter from Fortis Healthcare board, the Singh brothers had said their move was intended to free the organisation from any encumbrances that may be linked to the promoters. (IE)

Under pressure, Singh brothers — Malvinder and Shivinder — on Thursday said they were “not going anywhere”, as they face payment of Rs 3,500-crore arbitration award to Daiichi Sankyo and a probe into alleged financial irregularities at Fortis Healthcare and Religare Enterprises. The brothers, who had quit from the boards of Fortis and Religare earlier this month, said “given the circumstances and immense challenges facing us today, we assure all our stakeholders that we are doing whatever it takes to resolve the issues and will not shy away from our current responsibilities”. In a joint statement, they said: “We assure that we are not going anywhere and are addressing the issues with responsibility and sincerity. We will not shy away from any and all processes, questions, clarifications that need to be addressed; and we will provide all cooperation to ensure that the truth comes forth”.

The Delhi High Court had on January 31 upheld an international arbitral award of Rs 3,500 crore passed in favour of Japanese pharma major Daiichi Sankyo, which had alleged that the former promoters of erstwhile Ranbaxy Laboratories had concealed information about proceedings against them by American food and drug department. The Serious Fraud Investigation Office (SFIO) is also reported to be initiating a probe into alleged financial irregularities at Fortis and Religare.

Moreover, on February 15, the Supreme Court lifted its stay on sale of shares of Fortis Healthcare pledged with banks by the Singh brothers before August 31, allowing financial institutions, including Axis Bank and Yes Bank, to sell the pledged shares. Subsequently, the stake of promoter firm Fortis Healthcare Holdings along with promoters Malvinder Mohan Singh and Shivinder Mohan Singh and other family entities have come down to 5.87% from 34.43% earlier. In their resignation letter from Fortis Healthcare board, the Singh brothers had said their move was intended to free the organisation from any encumbrances that may be linked to the promoters.

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