SEBI Directs Fortis To Continue Efforts To Recover Rs 403 Crore From Singh Brothers
Singh brothers and six entities have been directed not to dispose of any of their assets or divert funds without SEBIs permission.
The Securities and Exchange Board of India directed Fortis Healthcare Ltd. and Fortis Hospitals Ltd. to continue efforts to recover more than Rs 403 crore from Shivinder Mohan Singh and Malvinder Mohan Singh as well as seven other entities.
The latest ruling confirms the regulator’s interim order where it had found that Singh brothers along with seven entities diverted Rs 403 crore from Fortis Healthcare, for the ultimate benefit of parent company—RHC Holding Pvt Ltd.—and group company Religare Finvest Ltd.
Singh brothers, erstwhile promoters of Fortis Healthcare, have also been asked not to associate themselves with the affairs of Fortis Healthcare and Fortis Hospitals in any manner.
The seven entities are:
- RHC Holding
- Shivi Holdings Pvt Ltd.
- Malav Holdings Pvt Ltd.
- Religare Finvest
- Best Healthcare Pvt Ltd.
- Fern Healthcare
- Modland Wears Pvt Ltd.
According to the regulator, the entities have failed to effectively rebut the prima facie findings and the allegations made against them in the interim order.
The detailed investigation in the matter is still in progress which is supposed to reveal all the layers of the alleged fraud as well as expose the specific role of each entity, it noted.
Pending investigation, Singh brothers and the six entities have also been directed not to dispose of any of their assets or divert any funds without SEBIs prior permission.
For Religare Finvest, the regulator said the firm should not dispose of or alienate any of its assets or divert any funds except for complying with corrective action plan as stipulated by the Reserve Bank of India.