The Delhi High Court on Monday asked former Ranbaxy promoters Malvinder Singh and Shivinder Singh to seek its approval before selling stake in any of their current companies. Japanese conglomerate Daiichi Sankyo, which had in 2008 bought a majority stake in Ranbaxy, had moved an interim application at Delhi High Court in January this year, asking the court to pass an order restraining Singh brothers and their companies “from selling, alienating, disposing of or encumbering their movable and immovable assets in any manner whatsoever to the extent of the awarded amount (of Rs 3,500 crore)”.
In May 2016, the former Ranbaxy promoters had assured the High Court that they would keep assets secure to be in a position to make the Rs 3,500-crore payment to Daiichi Sankyo.
A Singapore arbitration court imposed this fine after finding the Singh brothers guilty of concealing information while striking the deal with the Japanese company.
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In January this year, Daiichi’s moved the interim application as Malvinder and Shivinder were reportedly looking to induct an investor in Fortis Healthcare. The Singh brothers have a majority shareholding in RHC Holdings — a private limited company. Listed companies like Fortis Healthcare and Religare, and unlisted companies including SRL Diagnostics, are controlled through RHC Holdings.
RHC Holdings told the court on Monday that as per its understanding, on January 23, it was “not directed by this honourable court to furnish details/particulars of the unencumbered assets held by them”. It then added that Singh brothers’ understanding of the said order was that they were “required to establish that they held unencumbered assets, sufficient to meet the majority award, if the same was held enforceable in India”.
On this, the court clarified that Malvinder and Shivinder “were in fact required to furnish the information relating to all unencumbered assets, both moveable and immoveable, and not merely investments and loans and advances”. Singh brothers’ counsel then assured the court that they will submit complete details within one week.