SC sends former Fortis Healthcare promoters to six months in jail

    The High Council sentenced former Ranbaxy promoters Malvinder Singh and Shivinder Singh to 6 months in prison on Thursday in a case linked to the sale of shares of fortis to Malaysia-based IHH Healthcare.

    A bank, headed by Chief Justice UU Lalit, declined to stay on IHH Healthcare Berhad’s open offer for a 26 percent stake in Fortis Healthcare. It asked the Delhi High Court for pre-trial detention in the case and also ordered a forensic audit of the Fortis-IIH deal. “Everything goes back to the executive court,” it sounds.

    The former promoters of Fortis Healthcare Ltd became embroiled in a lawsuit after Daiichi Sankyoa Japanese company, had challenged the Fortis-IHH stock agreement to recover the arbitration award of Rs 3,600 crore it won in a Singapore court against the Singh brothers.

    Due to a legal battle between Daiichi Sankyo and the former promoters of Fortis Healthcare, the deal between IHH and Fortis has stalled.

    The highest court also fined the Singh brothers in the contempt suit brought against them by the Japanese company.

    Daiichi Sankyo asked the court to enforce the arbitral award handed down by a Singapore tribunal in 2016.

    The Delhi High Court ruled in January 2018 that the arbitration that Daiichi Sankyo won against the Singh brothers for concealing information about the former Ranbaxy Laboratories was enforceable in India.

    In 2018, IHH Healthcare had acquired a 31 percent majority stake in Fortis, triggering a mandatory open offer to acquire an additional 26 percent of the market’s Fortis shares. However, the open offer could not go through due to pending legal proceedings related to the transaction based on a plea filed by Daiichi Sankyo.

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