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Daiichi Sankyo-Ranbaxy case: Entities told to give proof of no pending liabilities towards Singh brothers

The high court direction potentially opens Gurinder Singh Dhillon and his family to further scrutiny.

Former Ranbaxy promoters Malvinder Singh and Shivinder Singh.

The Delhi High Court Thursday directed companies and persons who allegedly owe monies to former Ranbaxy promoters Malvinder Singh and Shivinder Singh to provide documentary evidence — including income tax filings, bank statements and balance sheets — to support claims that they have no pending financial liabilities towards the brothers. The HC direction potentially opens Radha Soami Satsang Beas (RSSB) chief Gurinder Singh Dhillon and his family to further scrutiny, as Dhillon had — in an affidavit filed with the HC on November 12— claimed to have returned all the money he had borrowed from the Singhs and that, instead, the brothers owed him over Rs 70 crore.

The court also allowed Japanese drugmaker Daiichi Sankyo to send questions related to these transactions to over 50 such firms and individuals, or garnishees. They will then have to compulsorily answer those questions. Justice J R Midha has also asked the garnishees to submit documentary evidence if they contest claims of loans made to them by RHC Holding Pvt, a firm controlled by the Singhs.

Daiichi on Thursday also claimed that the garnishees had not complied with all earlier court orders to disclose “all their dealings and transactions” with the Singh brothers, their family members, and the firms controlled by them. The HC has given the garnishees four weeks to file said the affidavits. Daiichi is seeking over Rs 3,600 crore in damages from the Singhs for allegedly concealing information regarding wrongdoing at Ranbaxy when they sold it to Daiichi for $4.6 billion in 2008.

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RHC Holding had, in October, told the HC that its subsidiaries had “huge receivables” from Dhillon and his family. The RSSB head, however, has denied these claims. Instead, he has alleged that the holding company is yet to pay him over Rs 70 crore, loaned to the Singhs upon their request in 2011 after his sons sold some of their shares in Religare Enterprises.

“In summary, over the course of 2011-2015, out of the surplus of Rs 103.5 crore with Respondent No. 19 (RHC) … the Deponent (Dhillon) and his family drew only Rs 29.38 crore, leaving a balance surplus of Rs 74.12 crore,” Dhillon said in his affidavit. “These amounts have never been repaid,” he added. Dhillon has also alleged that the Singhs used bank accounts owned by his family to conduct circular transactions over Rs 600 crore, the purpose of which was “unknown” to them.

A group of companies comprising Best Healthcare, Fern Healthcare, Modland Wears, Best Health Management, Devera Developers, Vitoba Realtors and Adept Lifespaces, “from time to time … moved money between themselves”, the affidavit read.

“These transactions essentially involved transferring money from one subsidiary to a bank account of the Deponent and/or his family members and then transferring the same money, either on the same day or shortly thereafter, to another subsidiary of the group or usually to Respondent No. 19 itself,” it stated.

“The transactions carried out by Respondent No. 19 resulted in GP (Gurpreet Singh Dhillon) and GK (Gurkirat Singh Dhillon) receiving funds from various companies controlled by Respondent No. 19, which were immediately transferred to Respondent No. 19 and/or other companies controlled by Respondent No. 19,” Dhillon’s affidavit added.

Between 2011 and 2016, RHC’s subsidiaries had transferred Rs 292.91 crore and Rs 428.59 crore, respectively, to Dhillon’s sons Gurpreet and Gurkirat. Of this, Rs 291.70 crore was transferred back from Gurpreet’s account and Rs 427.78 crore from Gurkirat’s account to RHC or one of the other subsidiaries, the affidavit claimed. Queries sent to RHC and Dhillon’s lawyer remained unanswered by press time on Thursday.

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