A district court in Delhi, on Friday, granted the police four-day custody of Ranbaxy's former promoter Shivinder Singh, his brother and former Fortis Healthcare promoter Malvinder Singh and three others. The three are accused of allegedly misappropriating funds of Religare Finvest Ltd (RFL) and causing it losses of around Rs 2,397 crores. This comes after Religare Enterprises Ltd (REL) of which the RFL is a subsidiary, had filed a complaint with the Economic Offences Wing (EOW). The police had sought their custody for six days.
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.
After the REL lodged an FIR against the Singh brothers, Malvinder and Shivinder Singh responded by blaming Sunil Godhwani for all the troubles faced by the group. The FIR had been registered for various offences including cheating, criminal breach of trust, misappropriation, fraud and forgery and criminal conspiracy. The REL was controlled by the Singh brothers and following their exit in February 2018, the boards of REL and RFL were re-constituted. Officials have stated that the Enforcement Directorate (ED) is probing an alleged misappropriation of around Rs 2,397 crores funds and is also investigating companies like Arch Finance and RHC Limited. In August 2019, the ED had raided multiple premises linked to erstwhile Religare promoters, Singh brother, and others in connection with a money laundering case, agency officials said.