Religare, Fortis' Singh brothers accused of siphoning money in fresh lawsuit

Malvinder Singh, Chairman of Fortis, speaks during a news conference in New Delhi July 26, 2010. Malaysian state investor Khazanah trumped India's Fortis Healthcare in a takeover battle for Singapore's Parkway with an offer that values Asia's biggest listed hospital operator at $3.3 billion. REUTERS/B Mathur (INDIA - Tags: BUSINESS HEALTH) - GM1E67Q1FD701

Billionaire brothers Malvinder Singh and Shivinder Singh are being accused of "diversion, siphoning and digression of assets" by a New York-based investor in a lawsuit filed in the Delhi High Court, according to a report by The Economic Times. Hearing in the case has been scheduled for March 20.

According to the report, the lending arm of Singh brothers' firm, Religare Enterprises, took 21 loans to a number of seemingly independent companies.

The companies then routed at least USD 300 million back to the privately held Singh firms on the same day, according to a central bank probe into the company's books for FY16 filed as part of the 700-page suit in November last year.

The suit alleges that the Singh brothers diverted the lender's funds to help them with a personal debt of about USD 1.6 billion. The debt would have forced them to sell parts of their business, including Religare and Fortis Healthcare.

The report quoted Religare as saying that the allegations "are completely baseless and we categorically deny them".

"As the matter is sub judice we cannot offer more comments. However we will comment further at an appropriate time," the media response added.