New Delhi: In late night drama on Thursday, the economic offences wing (EOW) of the Delhi police arrested former co-promoter of Religare Enterprises, Malvinder Mohan Singh, in Ludhiana (Punjab) for allegedly causing wrongful loss worth ₹2,397 crore to Religare Finvest Ltd, a senior Delhi police official said.
“He was nabbed in Punjab, and we are getting him to Delhi," a senior Delhi police official said about Malvinder Singh
An official statement from the Delhi Police will be available on Friday morning.
Malvinder Singh’s arrest comes hours after his younger brother Shivinder Singh, former Religare Enterprises chairman and managing director Sunil Godhwani, as well as two other officials from the companies were also arrested in the same case.
“The alleged persons, having absolute control of Religare Enterprises Ltd and its subsidiaries, put Religare Finvest Ltd in poor financial condition by way of disbursing loans to the companies having no financial standing and controlled by the alleged persons," the Delhi Police had said in the statement earlier on Thursday.
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 financial irregularities were flagged during independent audits by the Reserve Bank of India and Securities and Exchange Board of India (SEBI), the Delhi Police said.
The arrests were made based on a complaint filed by Religare Enterprises arm Religare Finvest in December, when they alleged that the three had misappropriated funds of Religare Finvest to the tune of around ₹740 crore through loans to entities that were related to them or their associates.
Religare Finvest had also named N.K. Ghoshal, a long-time associate of promoters, along with directors of the promoter companies.