A Delhi court Friday sent former promoters of Religare Enterprises Ltd Shivinder Singh and his elder brother Malvinder Mohan Singh, and three others in a four-day police custody in connection with an alleged fraud case involving misappropriation of funds of Religare Finvest Ltd (RFL), causing it losses of Rs 2,397 crore.
In the court, the Delhi Police’s Economic Offences Wing (EOW) had sought a six-day remand for the accused. While Malvinder’s counsel argued that he had been cooperating with the probe. Shivinder told the court that he himself is a victim of the fraud and appeals to cooperate with the investigation in every possible manner.
Both Shivinder and Malvinder were arrested on Thursday for alleged diversion of public money “in a clandestine manner for their own benefit”. The other three accused in the case are Sunil Godhwani, former chairman and managing director of Religare Enterprises Ltd (REL), Kavi Arora and Anil Saxena who held “important managerial positions in REL and RFL”.
Additional Commissioner of Police (EOW) O P Mishra had said, “In the complaint, allegations have been levelled by Manpreet Singh Suri of Religare Finvest Ltd against Malvinder Mohan Singh, Shivinder Mohan Singh, Sunil Godhwani and others. The alleged persons, having absolute control on Religare Enterprises Ltd and its subsidiaries, put RFL in poor financial condition by way of disbursing loans to companies having no financial standing and controlled by the alleged persons.”
“These companies wilfully defaulted on repayments and caused wrongful loss to RFL to the tune of Rs 2397 crore,” Mishra said, adding that independent audits had also flagged these. “The alleged persons systematically siphoned and diverted money of general public in a clandestine manner for their own benefit,” he said.
The arrest on Thursday came two months after the Enforcement Directorate (ED) carried out searches at the homes of the Singh brothers after revelations from the Mauritius Leaks on their offshore holdings were described as “corroborative evidence” for the investigating agency.