Singh Brothers In Trouble, SEBI Directs Fortis To Recover Rs 403 Crore Within 3 Months

| December 22 , 2018 , 17:02 IST

The Securities and Exchange Board of India (Sebi) on Friday directed Fortis Healthcare and Hospitals to take strict actions and necessary steps to recover Rs. 403 crore along with interest, from Singh brothers and seven other entities within three months.

Singh brothers are not supposed to associate themselves with the affairs of Fortis Healthcare (FHL) in any manner till further directions, said SEBI.

SEBI also issued an order asking Malvinder Mohan Singh and Shivinder Mohan Singh, not to dispose of or alienate any of their assets or divert any funds, except under certain conditions, without the prior permission of the regulator.

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The Supreme Court had recently put on hold the sale of Fortis Healthcare to Malaysia’s IHH Healthcare Berhad on a contempt plea filed by Japanese drugmaker Daiichi Sankyo against the Singh brothers.

Daiichi Sankyo had moved a contempt plea against the Singh brothers and Indiabulls alleging that the two created fresh mortgages on 1.2 million shares of Fortis Healthcare Holding despite the SC’s order against it.

In mid-November, Northern TK Venture — a wholly owned indirect subsidiary of IHH Healthcare Berhad — subscribed to 23.52 lakh shares of Fortis Healthcare, thereby completing the investment of IHH in Fortis.

With this preferential issue, IHH through NTK infused approximately Rs 4,000 crore of primary capital into the company and NTK became the controlling shareholder in the company with nearly 31.1 per cent stake on the expanded capital.