RFL case: Delhi HC reserves order on Malvinder’s plea
The Delhi high court on Friday reserved order on whether to issue notice to police on former Fortis Healthcare promoter Malvinder Singh’s plea seeking quashing of an FIR against him that alleged misappropriation of Religare Finvest Ltd (RFL) funds, causing it a loss to the tune of ₹2,397 crore.
Justice Brijesh Sethi reserved order on the plea after hearing arguments on behalf of Singh, Economic Offences Wing (EOW) of Delhi Police and RFL.
Singh had approached the high court on Thursday, hours before his arrest. Meanwhile, a Delhi court granted the police four-day custody of Malvinder, his brother Shivinder Singh and three others, arrested for alleged misappropriation of funds.
Singh, in his plea in the high court has contended that only the Serious Fraud Investigation Office (SFIO), which comes under ministry of corporate affairs, could have investigated the allegations of fraud and cheating against him.
Singh, represented by senior advocate Abhishek Manu Singhvi, urged the court to issue notice in the matter and also stay the proceedings initiated by the police, which was opposed by the EOW and RFL.
Singhvi argued that the SFIO was already investigating the issue of diversion of funds on a complaint by Religare Enterprises Ltd (REL) and therefore, EOW “could not have jumped the gun”. He said the SFIO had initiated investigation on February 17, 2018 on the direction of the ministry.
EOW, represented by Delhi government additional standing counsel (criminal) Avninder Singh, opposed the contentions and argued that the SFIO was only given the mandate to investigate REL and Fortis Healthcare and a fresh notification would have to be issued by the Centre to allow it to probe RFL.
The contention was supported by the SFIO, represented by additional solicitor general (ASG) Maninder Acharya, which said presently it has not been directed by the government to investigate RFL and it cannot probe the company without prior approval.
EOW also told the court that according to a forensic report from the Reserve Bank of India, it has been found that ₹1,260 crore was diverted from RFL.
The agency also contended that an accused cannot choose which agency would investigate it and that even if the SFIO was investigating them under the Companies Act, it cannot save them from being prosecuted under the IPC.