After the Singh brothers failed to return the diverted money as per the directions of SEBI, Fortis Healthcare Ltd. has asked the market regulators to order the arrest of its former promoters, informed chairman Ravi Rajagopal.
Earlier in December, the Securities and Exchange Board of India had directed Fortis Healthcare (FHL) and Fortis Hospitals to take necessary steps to recover the amount of Rs 403 crore which had gone out of the company as secured inter-corporate loans, along with interest, from former promoters Shivinder Mohan Singh and Malvinder Mohan Singh along with seven other entities within three months. “Since they have failed to refund the due amounts in compliance of SEBI orders, an application under Section 28A of SEBI Act has been filed, praying for recovery and directions against the entities”, said the chairman on Friday in an interview.
However, Shivinder Singh in his defence said that he was not in the position to make any kind of decision. He said that he had officially retired from all the executive roles in Fortis in September 2015, when the loans and advances were made.
“I have cooperated in all my interactions with Sebi and made my position clear...I retired, I will never do harm to the institution that I’ve built from the first brick. Anyone who has worked with me in Fortis would support this position.” Apart from the Singh brothers, SEBI order had the names of RHC Holdings, Shiv Holdings Pvt. Ltd, Malwa Holdings Pvt. Ltd, Religare Finvest Ltd, Fern Healthcare Pvt. Ltd and Modland Wears Pvt. Ltd.
Earlier in February, Malvinder Singh had filed a criminal complaint accusing his younger brother Shivinder Singh of draining funds from their family holding company and fraudulently diverting them to a renowned spiritual guru.
Fortis Healthcare Limited is a chain of hospitals and is headquartered in Gurugram, India.