Singh brothers owe $500m to Dai­ichi Sankyo

The Times of India (New Delhi edition) - - Times City -

The two brothers have been dogged by con­tro­versy since the sale of Ran­baxy to Ja­panese drug-maker Dai­ichi Sankyo in deal worth Rs 17,000 crore that was signed in 2008. Later, the Ja­panese firm filed an ar­bi­tra­tion case in Sin­ga­pore al­leg­ing that the Singh brothers had con­cealed facts and with­held cru­cial in­for­ma­tion about the health of the com­pany be­fore the sale. The US FDA had se­ri­ous ir­reg­u­lar­i­ties in Ran­baxy’s plants.

The brothers, heirs to Ran­baxy Lab­o­ra­to­ries Ltd, owed around $500 mil­lion to Dai­ichi Sankyo af­ter a Sin­ga­porean court found them guilty of lur­ing Ja­panese drug-maker to pur­chase Ran­baxy by with­hold­ing in­for­ma­tion.

Ad­di­tional CP (EOW) O P Mishra said a case of cheat­ing and fraud was reg­is­tered last March on the ba­sis of a com­plaint reg­is­tered by RFL le­gal man­ager Man­preet Singh Suri. “The role of the ac­cused per­sons in di­vert­ing pub­lic money was es­tab­lished dur­ing the in­ves­ti­ga­tion and they were ar­rested on the ba­sis of the ev­i­dence we had col­lected,” Mishra al­leged.

The brothers and top ex­ec­u­tives, in­clud­ing God­hwani, are also be­ing probed by other agen­cies, in­clud­ing the En­force­ment Direc­torate and the Se­ri­ous Frauds In­ves­ti­ga­tion Of­fice (SFIO).

In the com­plaint, Suri had al­leged that the ac­cused had ab­so­lute con­trol over the func­tion­ing of the Reli­gare En­ter­prises and its sub­sidiaries, in­clud­ing RFL, dur­ing their tenure. “The ac­cused had left the com­pany in a poor fi­nan­cial con­di­tion by way of dis­burs­ing loans to com­pa­nies hav­ing no fi­nan­cial stand­ing that were con­trolled by them,” ac­cord­ing to the com­plaint.

These com­pa­nies are ac­cused of wil­fully de­fault­ing in re­pay­ments and wrongful loss to RFL worth Rs 2,397 crore. The de­fault was also pointed out dur­ing the in­de­pen­dent au­dit car­ried out by the RBI and mar­ket reg­u­la­tor Sebi.

Po­lice said that Shivin­der was the pro­moter of Reli­gare En­ter­prise, which had 85% in RFL. God­hwani was the chair­man and manag­ing di­rec­tor, while the other two ac­cused held se­nior man­age­rial po­si­tions. The re­la­tion­ship be­tween the Singh brothers had soured af­ter al­le­ga­tions of fund di­ver­sion from the health­care chain emerged. Ties with God­hwani and the brothers were also strained.

In Au­gust, the En­force­ment Direc­torate (ED) had also searched res­i­dences of for­mer Ran­baxy chief ex­ec­u­tive of­fi­cer (CEO) Malvin­der and his brother Shivin­der in Delhi in con­nec­tion with a money laun­der­ing case.

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