Former Fortis promoters Malvinder Singh (left) and Shivender Singh. (HT )
Former Fortis promoters Malvinder Singh (left) and Shivender Singh. (HT )

Sebi directs Fortis firms to recover 403 cr from Singh brothers, 7 others

  • Pending investigation, Singh brothers and the six entities have also been directed not to dispose of any of their assets
  • Singh brothers, erstwhile promoters of FHL, have also been asked not to associate themselves with the affairs of FHL and FHsL in any manner

NEW DELHI : Sebi on Tuesday directed Fortis Healthcare Ltd (FHL) and Fortis Hospitals Ltd (FHsL) to continue efforts to recover more than 403 crore from Shivinder Mohan Singh and Malvinder Mohan Singh as well as seven other entities. The latest ruling confirms the watchdog's interim order where it had found that Singh brothers along with seven entities diverted 403 crore from FHL, for the ultimate benefit of parent company -- RHC Holding Pvt Ltd -- and group company Religare Finvest Ltd.

Singh brothers, erstwhile promoters of FHL, have also been asked not to associate themselves with the affairs of FHL and FHsL in any manner.

RHC Holding, Shivi Holdings Pvt Ltd, Malav Holdings Pvt Ltd, Religare Finvest, Best Healthcare Pvt Ltd, Fern Healthcare and Modland Wears Pvt Ltd are the seven entities.

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 Sebi's 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.

This story has been published from a wire agency feed without modifications to the text.

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