Daiichi filed three fresh applications in the high court saying that the brothers did not declare the money in their affidavits and it is parked in 25 different companies
Japanese pharmaceutical company Daiichi Sankyo told the Delhi High Court that former Fortis Healthcare promoters Malvinder and Shivinder Singh diverted around Rs 2,900 crore through its downstream companies, The Hindu Business Line reported.
The brothers owe Daiichi Rs 3,500 crore to settle an arbitration award announced by a Singapore tribunal. The Delhi High Court is overseeing the execution.
Daiichi filed three fresh applications in the high court saying that the brothers did not declare the money in their affidavits and it is parked in 25 different companies.
The Japanese company alleged that the Singh brothers offered loans to these companies that were almost 100 times more than their worth from 2012 till date.
In its application, Daiichi cited the example of Shimal Healthcare in which the Singhs are directors. The firm allegedly lent Rs 420 crore to six companies -- Best Healthcare, Devera Developers, Fern Healthcare, Modland Wears and Lowe Infra and Wellness -- through debentures and to Green Grass Estates, White Feather Estates and Bindas Realtors through equity. Four of these companies -- Modland, Bindas, Green Grass and White Feather -- purchased land with this money.
Green Grass purchased 35 acres of land, White Feather bought 31 acres in Thane district and Bindas 2.24 acres in New Delhi's Saket area.
The Singh brothers allegedly parked close to Rs 1,450 crore in Gurpreet Singh Sodhi and Ranveer Singh’s Prius Real Estate. This was routed through RHC Holdings, the holding company for ANR Securities and Ranchem and Bhai Trust, of which Malvinder Sing is a trustee. Prius holds another 10 downstream companies.
Daiichi alleged that the brothers have lent an additional Rs 1,000 crore to other entities that form a part of Shimal Healthcare and Prius Real Estate. The drug-maker has also asked the court to freeze such transactions by downstream companies.
The only purpose of these companies is fraud, Arvind Datar, Daiichi’s counsel told the paper. “On what basis has Shimal Healthcare given Rs 80 crore to Best Healthcare? What is the asset base of Best Healthcare? The downstream companies have thin capital and huge loans through debentures and preferences. The money has gone away,” he added.
Daiichi asked the court to follow and trace the brothers’ asset base and investment. “A director cannot put in his pockets something at the expense of the company,” Datar argued.
Malvinder Singh’s counsel, Akhil Sibal, said his client cannot give any assurances on behalf of 25 companies that are not a part of the current lawsuit. Sibal added that these downstream companies cannot be held responsible for a decree passed against Malvinder. He quipped, “They (Daiichi) have done their homework well.”
To this, the judge retorted, “Unfortunately you are on a weaker ground.”The 25 companies will be served notice to file a reply to Daiichi’s application. The next hearing of the matter is on November 13.