Religare Finvest Files Criminal Complaint Against Singh Brothers, Others
Religare Enterprises subsidiary discovered siphoning, misappropriation of Rs 740 crore.
A subsidiary of Religare Enterprises Ltd. filed a criminal complaint against the Singh brothers, former promoters of the parent, and their associates for allegedly siphoning and misappropriating Rs 740 crore.
Religare Finvest, a non-bank lender, accused Malvinder and Shivinder Singh, Sunil Godhwani, former managing director of the parent, and fellow associate NK Ghoshal of cheating, criminal breach of trust, misappropriation and embezzlement of funds and forgery, Religare Enterprises said in an exchange filing. The complaint was filed with the economic offences wing of the Delhi Police.
The move comes after Religare Finvest’s newly anointed board’s internal inquiries allegedly found irregularities. The probe, according to the company, revealed that the Singh brothers siphoned money through loans to entities controlled by them or their associates.
Provisions against the alleged fraud have been made and there will be no adverse impact on Religare Finvest, its parent said. The boards of Religare Enterprises and its subsidiary, till February controlled by the Singh brothers, were reconstituted.
The brothers, who have lost control of their multi-billion healthcare-to-financial services empire, have been embroiled in a personal feud, which reportedly escalated to physical assault since allegations of fund diversion from Fortis Healthcare Ltd. have emerged. Securities and Exchange Board of India is continuing an investigation in the alleged fraud since February.