Ranbaxy Ex-Promoters Malvinder, Shivinder Singh Raided In Fraud Case

Malvinder Singh and his brother Shivinder Singh, ex-promoters of pharmaceutical giant Ranbaxy, were raided today by the Enforcement Directorate in a Rs 740-crore fraud case. 

"Two places were raided in Delhi including Malvinder Singh's home," an official said. The searches were carried out as part of a case filed under the Prevention of Money Laundering Act, the official added.

The brothers have been accused by Religare Finvest of fraud and misappropriation of funds to the tune of Rs 740 crore.

In December, a criminal complaint was filed by Religare Finvest Limited with the Economic Offence Wing of the Delhi Police against the Singh brothers. A case was filed against the brothers in May.

The Enforcement Directorate initiated the money laundering case against them. 

Earlier this year, the two brothers were told by the Supreme Court that they could go to jail for disobeying orders to pay dues to Japanese firm Daiichi Sankyo.

The top court was hearing a petition in April by Daiichi, which is seeking to recover Rs. 3,500 crore awarded to it by a Singapore tribunal in its case against the estranged brothers.

Daiichi had bought Ranbaxy - founded by Malvinder Mohan Singh - in 2008. Later, it had moved the Singapore arbitration tribunal alleging that the brothers had concealed information that Ranbaxy was facing probe by the US Food and Drug Administration and the Department of Justice, while selling its shares.

The Singh brothers had resigned as directors from the board of Fortis Healthcare in February 2018, following a Delhi High Court order in favour of the tribunal award for Daiichi Sankyo.

In September last year, Shivinder Singh filed a case against his elder brother Malvinder Singh, alleging "oppression and mismanagement" at their joint businesses - RHC Holding, Religare and Fortis.