The promoters of Fortis Healthcare – executive chairman Malvinder Singh and non-executive vice chairman Shivinder Singh – resigned from the board on Thursday. The move follows the Delhi High Court order upholding the Rs 3,500 crore arbitral award in favour of Daiichi Sankyo.
In a filing to BSE, the company said: “Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that Mr. Malvinder Mohan Singh, Executive Chairman and Dr. Shivinder Mohan Singh, Non-Executive Vice Chairman have tendered their resignation from the directorships of the Company. The resignation letter was circulated to the Board and the Board has decided to discuss the matter in detail at its meeting scheduled on February 13, 2018.”
Fortis Healthcare said: “In light of the recent High Court judgment upholding the plea of Daiichi Sankyo to enforce the arbitration award, we believe this is in the interest of propriety and good governance.”
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 filing to BSE stated.
On January 31, the Delhi High Court had upheld an international arbitral award of Rs 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.