Shivinder Mohan Singh, the erstwhile promoter of Religare Enterprises Restricted (REL) was on Thursday arrested by the Financial Offences Wing (EoW) of the Delhi police, together with Sunil Godhwani, former chief of REL, amongst others following a grievance of misappropriation of funds of Religare Finvest Ltd, the lending arm of REL.
Malvinder Mohan Singh, the elder brother was not in Delhi and couldn’t be arrested. It’s learnt that a lookout discover has been issued towards him. Each Malvinder and Shivinder have been raided by the Enforcement Directorate in August this 12 months. The brothers have been accused by Religare Finvest of fraud and misappropriation of funds to the tune of Rs. 740 crore.
In December, a legal grievance was filed by RFL with EoW towards the Singh brothers, following which a case was filed towards the brothers in Might this 12 months.
Thursday’s developments cap a dizzying fall from grace for the 2 brothers. The scions of one among Delhis most distinguished enterprise households had offered Indias then largest drug maker Ranbaxy Laboratories for Rs 10,000 crore in 2008 and introduced huge plans of making an healthcare and monetary companies empire. However they’ve been dogged by costs of fraud, fund siphoning, unhealthy funding choices, court docket circumstances, and mounting private debt over the previous couple of years. Their failure to repay their lenders resulted in them dropping management of Fortis Healthcare and Religare Enterprises.
Earlier in 2018 authorities businesses opened a probe towards the brothers following an inner investigation by regulation agency Luthra and Luthra discovered mismanagement of funds in Fortis healthcare. The report by regulation agency Luthra and Luthra noticed siphoning of funds from Fortis by the previous promoters. It was discovered that in the course of the first quarter of economic 12 months 2016-17, a roll-over mechanism was devised, whereby Inter Company Deposists (ICDs) have been repaid by cheque by the borrower corporations on the finish of every quarter and contemporary ICDs have been launched at first of succeeding quarter beneath individually executed ICD agreements.
Fortis has additionally initiated a authorized motion to get well these excellent ICDs and different advances from each the brothers.