ED raids premises of former Ranbaxy group promoters under PMLA

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The Enforcement Directorate on August 1 raided the premises linked to erstwhile Ranbaxy promoters, Malvinder Mohan Singh and Shivinder Mohan Singh, in connection with a money-laundering case, agency officials said.

They said the raids were conducted after the filing of a case under the Prevention of Money Laundering Act (PMLA).

The action is being seen in the backdrop of charges of alleged financial irregularities against the two brothers and the subsequent downfall of their businesses. The brothers, Malvinder Singh and Shivinder Singh, have been accused of several financial irregularities in the case of sale of Ranbaxy to Japanese pharmaceutical company Daiichi Sankyo as well as in connection with the functioning of Fortis Healthcare and Religare Enterprises Limited.

On March 14 this year, the Supreme Court had directed the Ranbaxy promoters to submit a plan for repayment of the Japanese pharma company’s Rs 4,000 crore as per the direction of a Singapore tribunal.

However, in April the apex court had reserved its order in a case against the former Ranbaxy promoters following Daichii’s contempt plea. The court had also expressed its dissatisfaction over replies filed by the promoters in response to its March 14 direction.

In 2008, the Singh brothers had sold their stake in their family firm Ranbaxy Laboratories to Japanese company Daichii Sankyo. However, soon after the sale, several quality issues surfaced at Ranbaxy's plants, for which Diachii blamed the Singh brothers, accusing them of having suppressed facts relating to the plants at the time of sale.

With inputs from PTI