• On October 10, 2020, all the accused were arrested by Economic Offenses Wing of Delhi Police. It was alleged that the accused were in control of the REL and its subsidiaries, they have misused their control over RFL by sanctioning loans to the companies having no financial security and siphoning funds to other companies controlled by them.
  • It was alleged that the Religare Finvest Limited, a subsidiary of Religare Enterprises has suffered loss due to the willful default made by these companies, bad loans equating to INR 2397 crores.
  • The accused included the famous Ranbaxy promoters Mr. Malvinder Singh and Mr. Shivinder Singh amongst others i.e. Mr. Sunil Godwani, Mr. Anil Saxena and Mr. Kavi Arora.
  • The brother duo was also alleged to have conspired with the employees of Laxmi Vilas Bank causing misappropriation of two fixed deposits of worth INR 400 crore and 350 crores, made by the Religare Finvest.
  •  Both the brothers also made headlines for siphoning of funds amounting to INR 472 crore, belonging to Fortis Healthcare.
  • In this regard, the Economic Offenses Wing of Delhi police had registered a First Information Report, after receiving complaints from the Religare Finvest Limited, against the Mr. Manpreet Suri against Mr. Shivinder Singh, Mr. Sunil Godhwani, Mr. Kavi Arora, Mr. Anil Saxena and Mr. Manvinder Singh, for the offences of cheating, money-laundering. Moreover, Fortis had also written to the SEBI, praying the legal action against Singh brothers, for the recovery of INR 472 crores and Daiichi, a Japanese pharma-company is also pursuing arbitral award against the brother duo.

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THE KEY POSITIONS OWNED BY THE ACCUSEDS:

●      Mr. Malvinder and Shivender Singh were former promoter to Ranbaxy, Fortis Healthcare and Religare firm.

●       Mr. Anil Saxena was former Chief Financial Officer to the Religare Group

●       Mr. Sunil Godwani was former Managing Director for Religare Finvest

●       Mr. Kavi Arora ex-MD (Religare Finvest)

 

RECENT DEVELOPMENTS IN THE CASE:

 

  • On April 7, 2020, Mr. Malvinder Singh moved a bail application before the Delhi High Court, which was rejected. Subsequently, he made a representation challenging the criteria for grant of interim bail to under-trial prisoners, before the High-Powered Committee, headed by a Delhi High Court Judge, which was rejected on merits.
  • Earlier, on April 30, 2020, Shivinder Singh had also approached the Hon’ble Supreme Court praying for interim bail citing COVID-19 infection risk. The Apex Court had directed the Delhi High Court to look into the matter.
  • In June, 2020, a Delhi court rejected the bail plea of Mr. Shivinder Mohan Singh in a tax evasion case, connected with the alleged misappropriation of assets at (RFL). The Learned Additional Sessions Judge Sandeep Yadav, of the Saket Court had rejected the bail plea of accused, pointing out, “Considering the seriousness and gravity of the offenses, there being every likelihood of applicant Shivender Mohan Singh fleeing from justice or hampering the trial, I find it expedient in the interest of justice, not to enlarge him on bail.”
  • However, in the same month the, Hon’ble Mr. Justice Vibhu Bakhru, of the Delhi High Court has granted bail to Mr. Anil Saxena, subject to the condition that he shall not leave the territory of NCT of Delhi, without prior-permission of the Court and shall refrain from contacting any representatives of the Religare Group. The Order stated that, “the alleged role of the petitioner cannot be equated to that of the promoters, who are also alleged to be the beneficiaries of the funds siphoned from RFL”
  • The other co-accused are still in judicial custody at Tihar Jail.

This case brief has been prepared by Nimish Goel, who is a law student at School of Law, JIMS, Greater Noida & modified by Samreen Ahmed, Research Assistant, Research & Innovation Department (ARIL), MyLawman