/ Fortis files plea with SEBI to recover Rs 472 crore from Singh brothers

India Today : Feb 26, 2019, 02:56 PM

Fortis Healthcare has asked the Securities and Exchange Board of India (SEBI) to initiate legal proceedings, including arrest of its former promoters Malvinder and Shivinder Singh, to recover Rs 472 crore Rs 472 crore diverted into other companies. Fortis Healthcare has also asked SEBI for a personal hearing on the matter. The company is also awaiting SEBI approval on declassification of Singh brothers as promoters.

In an application to SEBI, Fortis Healthcare and Fortis Hospitals have asked for the invocation of Section 28 A of the Sebi Act to recover the amounts from Malvinder Mohan Singh, Shivinder Mohan Singh and a cluster of companies owned by them such as Shivi Holdings Pvt Ltd, Malav Holdings Pvt Ltd and Religare Finvest Ltd.

Fortis Healthcare has also asked SEBI for a personal hearing on the matter. Commenting on the development, Fortis Healthcare Ltd chairman Ravi Rajagopal said, "Once the SEBI order was received in October 2018, then the revised version in December 2018, we began legal proceedings to recover the money as per the directive in the order."

Rajagopal also said, "All the nine parties/noticees were sent notices from FHL. On January 18, 2019, the SEBI deadline for notices to pay back money to Fortis expired and on February 13, 2019, petition was filed by Fortis with SEBI to initiate legal proceedings against ex-promoters and related entities to recover money and for other directions."

The company is also awaiting SEBI approval on declassification of Singh brothers as promoters, Rajagopal said. He further stated that the previous board of Fortis Healthcare had links with the Singh brothers and there was an investigation by law firm Luthra and Luthra into the Rs 472 crore diverted into other companies.