Malvinder, Shivinder Singh resign from Fortis board
NEWDELHI:Fortis Healthcare promoters Malvinder Mohan Singh and Shivinder Mohan Singh have resigned as directors from the company’s board following the Delhi High Court order upholding the ₹3,500 crore arbitral award in favour of Daiichi Sankyo.
The Singh brothers have jointly tendered their resignation to the board of Fortis Healthcare, which will discuss it in the meeting on February 13, the company said in a filing to the BSE.
“Malvinder Mohan Singh, executive chairman and Shivinder Mohan Singh, non-executive vice-chairman have tendered their resignation from the directorships of the company,” Fortis Healthcare said.
The resignation is intended to free the organisation from any encumbrances that may be linked to the promoters, the letter said. “In light of the recent High Court judgement upholding the plea of Daiichi Sankyo to enforce the arbitration award, we believe this is in the interest of propriety and good governance,” it said.
The Delhi High Court had on January 31 upheld an interna- tional arbitral award of ₹3,500 crore passed in favour of Japanese pharma major Daiichi Sankyo, which has alleged that the former promoters of India’s Ranbaxy Laboratories had concealed information about proceedings against them by American food and drug department.
A tribunal in Singapore had passed the verdict in favour of Daiichi holding that the former Ranbaxy promoters and brothers, Malvinder Singh and Shivinder Singh, had concealed information that the Indian company was facing probe by the US Food and Drug Administration and the Department of Justice, while selling its shares.
With the resignation of the promoters, the board will be “better enabled and empowered to guide the future direction of the organisation without anyway being hampered by the Daiichi Sankyo judgement and our association at the board,” the letter said.