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Published 23:00 IST, October 10th 2019

EOW arrests ex-Ranbaxy promoter Shivinder Singh, 3 others

The Economic Offences Wing of the Delhi Police has arrested Ranbaxy's former promoter Shivinder Singh and ex-CMD of Religare Enterprises Ltd Sunil Godhwani

Reported by: Digital Desk
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The Economic Offences Wing of the Delhi Police has arrested Ranbaxy's former promoter Shivinder Singh and ex-CMD of Religare Enterprises Ltd Sunil Godhwani along with two others on Tuesday based on a complaint given by Religare Enterprises Limited that they had cheated the firm for of Rs 700 crore. The police has issued a look-out notice against former Ranbaxy promoter Malvinder Singh. Religare had accused them of diverting funds and misappropriation and filed the complaint against Singh Brothers and Sunil Godhwani.

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Enforcement Directorate raids Malvinder Singh, Shivinder Singh

The Enforcement Directorate in August 2019 had raided multiple premises linked to erstwhile Religare promoters, brothers Malvinder Mohan Singh and Shivinder Mohan Singh, and others in connection with a money laundering case, agency officials said. They said the raids were conducted at seven locations in Delhi including those connected to the Singh brothers, ex-CMD of Religare Enterprises Ltd (REL) Sunil Godhwani, REL executives N K Ghoshal, Hemant Dhingra after an Enforcement Case Information Case (ECIR), the police equivalent of a case, was filed by the agency. The ECIR has been filed under criminal sections of the Prevention of Money Laundering Act (PMLA) after taking cognisance of a Delhi Police Economic Offences Wing (EOW) complaint filed in December 2019.

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Religare charges Singh brothers with misappropriation of funds

REL's subsidiary Religare Finvest (RFL) had filed the complaint with the EoW, alleging fraud and misappropriation of funds to the tune of Rs 740 crore and had named the Singh brothers and others. On their part, the Singh brothers had blamed Godhwani for the troubles faced by the group. The EoW FIR had been registered for various offences including cheating, criminal breach of trust, misappropriation, fraud and forgery and criminal conspiracy. The REL was controlled by the warring Singh brothers until February 2018. Post their exit from the board of REL in February 2018, the boards of REL and RFL were re-constituted.

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Conflict between Singh brothers after charges were levied against them

The ED is probing alleged misappropriation of over Rs 2,397 crore funds in this case and is probing companies like Arch Finance Ltd and RHC limited, officials said. The relationship between the Singh brothers, also the erstwhile promoters of Fortis and Ranbaxy, turned sour after allegations of fund diversion from the healthcare chain emerged apart from other charges of financial impropriety. It is said to have further aggravated over payment of arbitration award to Daiichi Sankyo. Shivinder had offered to pay his share of the Rs 3,500 crore award to the Japanese drug maker in a dispute related to the acquisition of Ranbaxy Laboratories.

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(With inputs from PTI)

18:06 IST, October 10th 2019