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Last Updated : Sep 05, 2018 02:14 PM IST | Source: Moneycontrol.com

Fortis saga: Shivinder Singh moves NCLT against elder brother Malvinder

Shivinder said that he can no longer be party to activities in which transparency and ethics are continuously and consistently negated.

Viswanath Pilla @viswanath_pilla

Shivinder Singh, former Ranbaxy promoter and founder of Fortis Healthcare, on Tuesday said he had moved the National Company Law Tribunal (NCLT) against his elder brother Malvinder and Sunil Godhwani, former chairman and managing director Religare Enterprises, alleging oppression and mismanagement of RHC Holding, Religare and Fortis.

"The collective, ongoing, actions of Malvinder and Sunil Godhwani led to a systematic undermining of the interests of the companies and their shareholders mentioned above as also the committed and loyal employees of the group," said Shivinder in a press statement.

Shivinder said that he can no longer be party to activities in which transparency and ethics are continuously and consistently negated.

"It has come to a point where this means that I am now disassociating from my brother as a business partner and will be pursuing an independent path going forward. This action was long overdue but got delayed in the fond hope that better sense shall eventually prevail and another ugly chapter of family feud would not be written in our family business’ glorious history," he said.

The brothers have lost control over Fortis and Religare and are facing heat from Japanese drug maker Daichii Sankyo, which is trying to enforce Rs 3500 crore arbitration award it got from a tribunal in Singapore.

Last month, Fortis shareholders' approved the sale of their company to Malaysia’s IHH Healthcare in a $1.1 billion deal.

Shivinder said his focus and passion has always and solely been Fortis since its inception.

"I took public retirement to my spiritual home, Beas, to serve my Master, in 2015; leaving the thriving company I founded in ‘trusted’ hands and in a period of less than two years, it has moved towards disintegration and ruin of a national healthcare asset," he said.

Singh alleged that while the group businesses were in “competent” hands, red flags have crept up in the group with disturbing regularity.

“Decisions taken in Religare’s NBFC arm; the transaction and subsequent management of the sale of the group’s then flagship – Ranbaxy to Daiichi, culminating in one of the most damaging arbitration cases in the history of India Inc., the unimaginable losses accumulated in running a private charter airline business (Ligare aviation), all these only go to show that the malaise is systemic,” he said.

Despite his return from the Beas for the past many months to salvage the situation, Singh rued about things getting out of control.

Shivinder also said attempts to defame Gurinder Singh Dhillon, known as Babaji, the spiritual Guru of the Radha Soami Satsang Beas (RSSB), also made him open up.

"Recent planted media articles attempting to foist the responsibility of poor decisions taken, to an elder in the family who always stood by us as a father-figure ever since the premature demise of our father; has compelled me to break my silence," Shivinder said.

Singh brothers are related to Dhillon and consider him as their mentor. Singh brothers are said to have given a loan of around Rs 2,500 crore to the Dhillon family and property businesses controlled by them.

 
First Published on Sep 4, 2018 10:02 pm
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