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The market regulator SEBI has directed the former promoters of Fortis Healthcare – Shivinder Mohan Singh and Malvinder Mohan Singh, along with eight other entities to repay Rs. 403 crores along with interest to Fortis Healthcare, after finding illegal diversion of funds from the company.
According to an order uploaded on its website, SEBI said that all the entities have prima facie acted in a fraudulent manner in diverting funds around Rs 403 crore from Fortis Healthcare Ltd (FHL), a listed company, for the ultimate benefit of parent company – RHC Holding Pvt Ltd and group company -Religare Finvest Ltd, violating the securities laws.
In a 21-page interim order, The Securities and Exchange Board of India said that prima facie role of FHL and Fortis Healthcare Ltd (FHsL) in the alleged diversion of funds through conduit entities has been established.
The other entities that have been directed to repay the money involve Shivi Holdings Pvt Ltd, Malav Holdings Pvt Ltd, Best Healthcare Pvt Ltd, Fern Healthcare Pvt Ltd and Modland Wears Pvt Ltd. The money along with due interest has to be paid within three months to Fortis Healthcare Ltd.
Till the completion of pending investigation and until further order, the regulator also directed the Singh brothers and the eight entities to not dispose of any assets. The Singh brothers have been asked not to associate themselves with the affairs of the company.
However, they can utilise funds for certain purposes, including for meeting expenses of day-to-day business operations, the order stated.
