Malvinder Mohan Singh, chairman of Fortis Healthcare India Ltd., speaks during an interview at the 2011 Forbes Global CEO Conference in Kuala Lumpur, Malaysia (Photographer: Goh Seng Chong/Bloomberg)  

SFIO To Probe Fortis, Religare For Alleged Irregularities

The Serious Fraud Investigation Office will initiate a probe into alleged financial irregularities at Fortis Healthcare Ltd. and Religare Enterprises Ltd., according to a senior official.

The corporate affairs ministry has been looking into the affairs of Fortis Healthcare and Religare Enterprises after recent reports that financial irregularities have emerged at the two companies. A senior official at the ministry said that an SFIO probe has been ordered against the two companies.

The latest development comes against the backdrop of reports that the Fortis Healthcare’s promoters -- Malvinder Singh and Shivinder Singh -- took at least $78 million out of the company without any board approval, about a year ago.

A Religare spokesperson said the company has not received any communication, written or otherwise, from any government authority with regard to such a purported investigation.

As such we have no knowledge of any investigation against the company.
Religare Spokesperson

A query sent to Fortis Healthcare remained unanswered. The Singh brothers are promoters of both companies. The SFIO, under the ministry, mainly probes white collar crimes.

Fortis Healthcare has also come under the lens of markets regulator Sebi, which launched an investigation into the alleged regulatory lapses.

On Saturday, Fortis informed the exchanges that Sebi, which has instituted an investigation, has sought information and documents by Feb. 26.