Malvinder Singh (Photo: ANI)
Malvinder Singh (Photo: ANI)

RFL fund scam: Delhi HC notice to Malvinder, Godhwani on ED’s plea

  • HC seeks reply of Malvinder Singh on ED's plea challenging order refusing further police custody in money laundering case
  • The court listed the matter for further hearing on Tuesday

New Delhi: The Delhi High Court on Monday sought response from Malvinder Singh, former promoter of Fortis Healthcare, on Enforcement Directorate’s (ED) plea of three days of custodial interrogation in a money-laundering case related to alleged misappropriation of funds of Religare Finvest Limited (RFL). The court also issued notice to former chairman and managing director of Religare Enterprises Sunil Godhwani in the case.

“We are trying to procure documents and trace the funds. It is the public money which has been siphoned. Please see the enormity. The dispute relates to 10 years of siphoning of funds. We need custodial interrogation," said counsel Amit Mahajan appearing for Enforcement Directorate.

The notice was issued by the single judge bench of Chander Shekhar. The court will hear the matter on Tuesday.

The ED had arrested Singh and Godhwani on 14 November, following which their custody with the ED was extended twice. On 23 November, a Saket court rejected the ED's plea for extension of custody and remanded the two to judicial custody till 7 December.

ED had moved the Delhi high court against the trial court’s order.

Singh and Godhwani are accused of laundering money, punishable under sections 3 and 4 of the Prevention of Money Laundering Act (PMLA).

In December, Religare Enterprises and its subsidiary filed a complaint with 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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