The Delhi police’s Economic Offences Wing (EOW) arrested pharmaceutical giant Ranbaxy Ltd’s former promoter Malvinder Singh in early hours on Friday, hours after he was detained in Ludhiana late on Thursday, for allegedly causing wrongful loss worth 2,397 crore to Religare Finvest Ltd.

Malvinder’s arrest follows the arrest of his younger brother Shivinder Singh, former Religare Enterprises chairman, and managing director of the firm, Sunil Godhwani, along with two other officials from the companies were in the same case.

The accused, the Delhi police said, were arrested under section 409 (criminal breach of trust by a public servant, banker, merchant or agent) and section 420 (cheating) of the Indian Penal Code.

The EOW had been on the lookout for Malvinder Singh, following Thursday’s arrests.

The arrests are the culmination of around a year-long probe into the affairs of the Singh brothers, heirs to a storied business house that was worth billions a few years ago. Much of their troubles can be traced to the breakneck expansion plan of group companies that threw their businesses into a debt spiral.

The Singh brothers were promoters of financial firm Religare Enterprises and hospital operator Fortis Healthcare till last year. Godhwani was the chairman and managing director of Religare Enterprises till 2016.

The arrests were made based on a complaint filed by Religare Enterprises arm Religare Finvest in December, when it alleged that the three people had misappropriated funds of the company to the tune of 740 crore through loans to entities that were related to them or their associates.

In December, Religare Enterprises and its subsidiary made another complaint to the corporate affairs ministry alleging misappropriation of funds worth 2,230 crore of the company and its units.

The complaint also alleged that illegal issuances and redemption of preference shares led to undue gains of approximately 290 crore to promoter groups.

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