Former Ranbaxy promoters Malvinder Singh and Shivinder Singh were accused of concealing information about wrongdoing at Ranbaxy during its sale of a majority stake to Daiichi Sankyo, in 2008
The Supreme Court on Thursday awarded six months in jail to brothers Malvinder Singh and Shivinder Singh in the Daiichi-Fortis case and ordered a forensic audit of the Fortis-IHH deal.
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Malaysia’s IHH Healthcare had, in 2018, acquired a 31 per cent controlling stake in Fortis by paying $1.1 billion in a bidding process overseen by an independent board. This triggered an open offer to acquire another 26 per cent of Fortis shares from the market. The open offer was not pursued as Daiichi had filed a plea against it.
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Daiichi had challenged the Fortis-IHH deal to recover the Rs 3,600 crore arbitration award it had won in a Singapore tribunal against Fortis’ erstwhile promoters, brothers Malvinder Singh and Shivinder Singh.
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Former Ranbaxy promoters Malvinder Singh and Shivinder Singh were accused of concealing information regarding wrongdoing at Ranbaxy when they sold a majority stake in the company to the Japanese firm Daiichi Sankyo in 2008. The Singapore tribunal had in 2016 awarded Daiichi Rs 3,600 crore in damages.
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When the Singh brothers were selling Ranbaxy, the company faced an investigation by the US Food and Drug Administration and the US Department of Justice. The Singapore Arbitration tribunal had found the brothers guilty of making false claims in a self-assessment report and of fraudulently misrepresenting and concealing the probe by the US into Ranbaxy when Daiichi bought their 34.82 per cent stake for $2.4 billion in 2008.
There are several other cases against the Singh brothers.
Source : Business Standard
