Shares of Fortis Healthcare and Religare Enterprises extended their decline on Wednesday after the promoters, Malvinder Singh and Shivinder Singh, lost an arbitration case against Japanese drug maker Daiichi, with the Delhi High Court granting a recovery of Rs 3,500 crore from them. The Fortis Healthcare stock declined as much as 5.3% to hit its lowest level since December 20, 2017, while Religare Enterprises fell 3.1% to hit its lowest in the past two-and-a-half months. So far in 2018, the stock of Religare Enterprises has come off 38% while the Sensex has gained 5.6%. Fortis Healthcare lost 13.2% of its value since the start of the year. This translates into a combined market capitalisation loss of Rs 1,573 crore.

The Japanese drugmaker Daiichi alleged that the brothers had concealed critical information at the time of selling Ranbaxy Laboratories to the company in 2008. The Delhi High court rejected all objections raised by the Singh brothers and observed that the arbitration award was in line with Indian laws and policy. The Singapore tribunal had ruled in the Japanese firm’s favour in April 2016, directing the Singhs to pay over Rs 2,500 crore as damages. Including interest and legal fees, the award now amounts to Rs 3,500 crore.

In last July, India Ratings & Research had downgraded some non-convertible debentures (NCDs) and loans held by the holding company of the Singh brothers, RHC Holding, to default after the company defaulted on coupon payments.