Singh brothers and eight other entities have prima facie diverted 403 crore from Fortis Healthcare for the ultimate benefit of RHC Holding and Religare Finvest violating the securities laws, Sebi says
New Delhi: Finding illegal diversion of funds from the company, markets regulator Securities and Exchange Board of India (Sebi) on Wednesday directed the Singh brothers and eight other entities to repay ₹ 403 crore along with interest to Fortis Healthcare Ltd. The Singh brothers—Shivinder and Malvinder—are former promoters of Fortis Healthcare.
All the entities have prima facie acted in a fraudulent manner in diverting funds of around ₹ 403 crore from Fortis Healthcare, a listed company, for the ultimate benefit of parent company—RHC Holding Pvt. Ltd—and group company—Religare Finvest Ltd—violating the securities laws, Sebi said.
In a 21-page interim order, Sebi said that prima facie role of Fortis Healthcare and wholly owned subsidiary FHsL in the alleged diversion of funds through conduit entities has been established.
Apart from the Singh brothers, FHsL, RHC Holding and Religare Finvest, the other entities that have been asked to repay the money are Shivi Holdings Pvt. Ltd, Malav Holdings Pvt. Ltd, Best Healthcare Pvt. Ltd, Fern Healthcare Pvt. Ltd and Modland Wears Pvt. Ltd.
The money along with due interest has to be paid within three months to Fortis Healthcare.
Pending completion of investigation and till further order, the Singh brothers and the eight entities have also been directed not to dispose of any of their assets or divert any funds without prior permission of Sebi. However, they can utilize funds for certain purposes, including for meeting expenses of day-to-day business operations, the order said.
“The prime facie role of FHL and FHsL in the alleged diversion of funds through the conduit entities (viz. Best, Fern and Modland) to RHC Holding and Religare Finvest Limited for the ultimate benefit of Shivi Holdings Private Limited, Malav Holdings Pvt Ltd, Shivinder Mohan Singh and Malvinder Mohan Singh has already been established," the regulator said, citing a forensic audit report.
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