SC asks 17 lenders to explain Fortis sale

The Supreme Court on Thursday directed 17 lenders, banks and financial institutions to explain the share sale by Fortis Healthcare's former promoters Malvinder Singh and Shivinder Singh.

Passing a slew of directions, a bench comprising Justices U.U. Lalit, Indira Banerjee and K.M. Joseph said: "We direct all the noticee banks and financial institutions: - (a) to place on record the basic documents pertaining to loans advanced or financial accommodations extended in respect of which the shares of FHL were pledged with them; (b) to place on record the nature of securities offered in connection with such loan arrangements."

The top court also asked the lenders to place on record the details of the encumbered and unencumbered shares of Fortis Healthcare Ltd (FHL) standing in the name of Fortis Healthcare Holding Private Ltd (FHHPL), held by them in September 2016, as well as details of encumbered and unencumbered shares of FHL standing in the name of FHHPL, held by them on August 11, 2017.

"... to give details of shares of FHL standing in the name of FHHPL, sold by banks/financial institutions from January 2017; (g) to disclose whether such encumbrance created after August 11, 2017 was in pursuance of any fresh arrangement or agreement,” it said.