Daiichi hearing: Delhi High Court issues summons to Singh brothers

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New Delhi | Published: August 2, 2018 3:11:32 AM

Justice Rajiv Shakdher asked the Singh brothers if they had sufficient funds to satisfy the award or they should declare themselves “insolvent” and “go behind bars”.

Daiichi hearing: Delhi High Court issues summons to Singh brothers

Observing that “things are getting out of hand”, the Delhi High Court on Wednesday asked former Ranbaxy promoters Malvinder and Shivinder Singh to be personally present before it on August 10 to explain the discrepancies in their statements on their assets and shareholding in Fortis Healthcare and also if they had sufficient funds to satisfy Japanese pharma major Daiichi’s Rs 3,500 crore arbitration award against them.

Justice Rajiv Shakdher asked the Singh brothers if they had sufficient funds to satisfy the award or they should declare themselves “insolvent” and “go behind bars”.

“Have seen and heard enough. Wherever you have to get it (the value assured) from, you get it, or you will go behind bars,” he said, adding that “you cannot take the court for a ride”.

The judge also said that the brothers “will have to cough up” the award amount that they owe to Daiichi.

The stern warning came after Daiichi told the bench that the value of underlying assets is gone and the number of shares reduced drastically.

In May 2016, Singapore’s arbitration tribunal had asked the brothers to pay damages of $400 million (`2,562.78 crore) to Daiichi for concealing and misrepresenting information during their stake sale in 2008 to the Japanese firm.

With interests and legal fees the payable amount now comes to around `3,500 crore. Daiichi had then moved the HC for enforcement of the award to recover the damages from the brothers. However, the brothers challenged the petition but lost.

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