Market regulator SEBI has asked Fortis Healthcare to take all necessary steps to recover ₹403 crore along with due interest from Malvinder Singh, Shivinder Singh and other entities including Religare Finvest Limited. SEBI has said that money should be recovered within three months.

SEBi has also asked FHsL, RHC, Shivi Holdings Pvt. Ltd., Malav Holdings Pvt. Ltd., Malvinder Mohan Singh, Shivinder Mohan Singh, Religare Finvest Limited, Best, Fern and Modland shall, not dispose of or alienate any of their assets or divert any funds, pending completion of the investigation.

It has also asked the Singh brothers to not associate themselves with the affairs of Fortis Healthcare in any manner whatsoever, till further directions.

Bloomberg had earlier reported that Singh brothers took at least Rs500 crore ($78 million) out of the publicly-traded hospital company they control without board approval about a year ago

The funds were reported on the balance sheet of Fortis Healthcare Ltd. as cash and cash equivalents, but the money was routed and placed under the control of the Singhs at the time. Fortis’s auditor, Deloitte Haskins & Sells LLP, refused to sign off on the company’s second-quarter results until the funds were accounted for or returned, the people said, asking not to be identified as the information is private.

“It prima facie appears that the routing of loans from FHsL to RHC through unrelated entities apparently was done to circumvent the provisions of Clause 32 of the Listing Agreement and Regulation 53(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as well as to misrepresent the transactions in the books of FHsL,” SEBI said.

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