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Tuesday, December 10, 2019

Ex-Ranbaxy promoters Malvinder, Shivinder guilty of contempt: SC

The Supreme Court said the Singh brothers violated its order asking them not to divest their shares in Fortis Healthcare Limited.

By: Express Web Desk | New Delhi | Updated: November 15, 2019 1:06:55 pm
Former Ranbaxy promoters Malvinder Singh and Shivinder Singh.

The Supreme Court Friday held ex-Ranbaxy promoters Malvinder Singh and Shivinder Singh guilty of contempt of court in a case filed by Japanese firm Daiichi Sankyo.

The top court said the Singh brothers violated its order asking them not to divest their shares in Fortis Healthcare Limited, news agency PTI reported.

Daiichi has sought enforcement of a Rs 3,500-crore arbitration award granted to it by Singapore tribunal in its case against Singh brothers.

A Supreme Court Bench which comprised of Chief Justice of India Ranjan Gogoi and Justice Deepak Gupta held the former promoters guilty and said that they had violated its earlier order by which the sale of their controlling stakes in Fortis Group to the Malayasian firm IHH Healthcare was put on hold.

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

The court also said that it would be hearing the Singh brothers on the quantum of sentence later.

Daiichi had filed the contempt petition against the two former Ranbaxy promoters alleging that the execution of their arbitral award had been in danger of loss as the Singh brothers disposed of their controlling stakes in Fortis Group to the Malaysian firm.

In May 2016, a Singapore arbitration tribunal ordered the former Ranbaxy promoters to pay damages of Rs 2,562.78 crore to Daiichi for concealing and misrepresenting information during their stake sale in 2008 to the Japanese company.

After being asked by the Singapore arbitration tribunal to pay up, the Singh brothers had challenged the decision before the Delhi High Court, which they had lost. In February last year, the Delhi High Court had ordered the attachment of all assets of RHC Holdings and Oscar Investments, the privately held holding companies that own assets of Malvinder and Shivinder Singh.

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