Former high-flyer tycoon brothers arrested

NEW DELHI: Tycoon brothers Shivinder and Malvinder Singh appeared in court yesterday accused of siphoning off hundreds of millions of dollars in the latest episode of a crumbling dynasty.

The former owners of the Ranbaxy generic drugs giant, who are said to have lost a fortune worth billions over the past decade, are in court over US$337 million diverted from the Religare financial group which they built up.

The brothers, also wrangling with each other over the lost money, were detained separately late on Thursday and charged along with three other top executives from the group. The court gave police four days to question the brothers, who have launched a counter action calling for the investigation to be declared invalid.

Police said in a statement that the suspects had put Religare “in poor financial condition by way of disbursing the loans to companies having no financial standing”.

The suspects “systematically siphoned off and diverted money ... in a clandestine manner for their own beneit,” the statement added.

The detention could speed the fall of the Singhs, whose grandfather and father built up Ranbaxy to become India’s largest pharmaceutical group.

Japan’s Daiichi Sankyo bought out Ranbaxy in 2008 in a deal valued at $4.6 billion.

Some of that went to repay loans and debt but the Singh brothers are said to have lost $2 billion in bad deals and decisions as they built up Religare and the Fortis hospital and health group.

But much focus has been put on more than $350 million that media reports said the Singhs’ group loaned to companies and interests of Gurinder Singh Dhillon, the guru at the head of a sect that claims four million members worldwide.