NEW DELHI :
Delhi High Court on Friday reserved order on whether to issue notice on former Fortis Healthcare promoter Malvinder Singh's writ petition which seeks quashing of an FIR against him that for allegedly causing wrongful loss worth ₹2,397 crore to Religare Finvest Ltd – an arm of Religare Enterprises.
The writ petition challenges the jurisdiction of the Economic Offences Wing (EOW), Delhi Police to register the First Information Report (FIR) on the complaint of Religare Finvest Limited, alleging siphoning by the Petitioner and others, of funds of Religare Enterprises and its subsidiary companies including Religare Finvest Limited, through fraudulent unsecured loans to shell, related and promoter owned/related companies.
"If both EOW and SFIO continue to investigate the same offence arising out of the same transaction, it would violate the principle of double jeopardy." Senior advocate Abhishek Manu Singhvi appearing for Malvinder Singh submitted. He sought notice to be issued to EOW or grant of stay on the proceedings initiated by EOW.
Singh, in his plea has contended that only the SFIO, which comes under Ministry of Corporate Affairs, could have investigated the allegations of fraud and cheating against him.
EOW and RFL questioned maintainability of the petition, while Singh urged the court to issue notice in the matter and also stay the proceedings initiated by the police.
Mewanwhile, Chief Metropolitan Magistrate Deepak Sherawat of the Saket district court on Friday sent former Ranbaxy promoters Malvinder Singh and Shivinder Singh to four days of police custody. Former Religare Enterprises chairman, and managing director Sunil Godhwani, along with two other officials have also been sent to the four-day police custody.
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 Delhi police’s Economic Offences Wing arrested the Singh brothers, Godhwani and the two other officials over Thursday-Friday for allegedly causing wrongful loss worth ₹2,397 crore to Religare Finvest Ltd – an arm of Religare Enterprises.
The arrests were made based on a complaint filed by Religare Finvest in December, when it alleged that the three people 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.