As the Delhi Economic Offences Wing (EOW) demands six-day judicial custody of Ranbaxy promoter Shivinder Mohan Singh and their associates, Indian Sports commentator Harsha Bhogle, on Thursday, hailed those businessmen who did business legitimately. Though Bhogle did not name the Singh brothers or that doing business the right way, he expressed his dismay at the arrest of the Ranbaxy promoters. He said it was time to celebrate leaders who are building businesses legitimately for hardworking to thrive. The Singh brothers were arrested on Thursday by the Delhi EOW for Rs.700 Cr. fraud.
Another industry leader and businessman (former?) arrested for fraud and economic offences. Time to start celebrating those that are building businesses legitimately and creating an environment where the honest and the hardworking can thrive.— Harsha Bhogle (@bhogleharsha) October 11, 2019
Earlier on Thursday, the EOW arrested Ranbaxy's former promoter Shivinder Singh and ex-CMD of Religare Enterprises Ltd (REL) Sunil Godhwani along with two others. The arrest was made based on a complaint given by REL that they had cheated the firm for Rs 700 crore. The police have issued a look-out notice against former Ranbaxy promoter Malvinder Singh. Religare had accused them of diverting funds and misappropriation and filed the complaint against Singh Brothers and Sunil Godhwani. They have been produced at court on Friday along with the others. The police are demanding six-day custody of the accused.
REL's subsidiary Religare Finvest (RFL) had filed the complaint with the EoW, alleging fraud and misappropriation of funds to the tune of Rs 740 crore and had named the Singh brothers and others. On their part, the Singh brothers had blamed Godhwani for the troubles faced by the group. The EoW FIR had been registered for various offenses including cheating, criminal breach of trust, misappropriation, fraud and forgery and criminal conspiracy. REL was controlled by the warring Singh brothers until February 2018. Post their exit from the board of REL in February 2018, the boards of REL and RFL were re-constituted.
The ED is probing alleged misappropriation of over Rs 2,397 crore funds in this case and is probing companies like Arch Finance Ltd and RHC limited, officials said. The relationship between the Singh brothers, also the erstwhile promoters of Fortis and Ranbaxy, turned sour after allegations of fund diversion from the healthcare chain emerged apart from other charges of financial impropriety. It is said to have further aggravated over payment of arbitration award to Daiichi Sankyo. Shivinder had offered to pay his share of the Rs 3,500 crore award to the Japanese drugmaker in a dispute related to the acquisition of Ranbaxy Laboratories.