SEBI Asks Fortis Healthcare To Recover Rs 403 Crore From Singh Brothers
The market regulator directed Fortis Healthcare Ltd. to recover Rs 403 crore from the Singh brothers and their companies that they had diverted from the hospital chain.
The healthcare company and its wholly owned subsidiary Fortis Hospitals Ltd. should take necessary steps to recover the money, with due interest, from the brothers and their allied companies within three months, according to an order uploaded on the website of Securities and Exchange Board of India. It barred Malvinder Singh and Shivinder Singh from disposing or alienating their assets and diverting funds except to meet the daily business operation expenses.
That comes after Religare Enterprises Ltd.’s subsidiary filed a criminal complaint against the brothers, former promoters of the parent, and their associates for allegedly siphoning and misappropriating Rs 740 crore. The brothers, who have lost control of their multi-billion healthcare-to-financial services empire, were being probed for alleged financial irregularities.
SEBI also barred the Singh brothers, who are embroiled in a personal feud, from associating with Fortis Healthcare or Fortis Hospitals in any manner. The regulator had earlier found that prima facie the healthcare company suffered a loss due to diversion of funds to promoters and related entities.