Daiichi writes to ED: Singh brothers of Ranbaxy fame formed companies of ‘dubious nature’ to siphon off money

Japanese drug maker Daiichi Sankyo in a complaint to the Enforcement Directorate (ED) has alleged that former Ranbaxy promoters Malvinder and Shivinder Singh formed companies of “dubious nature” to conduct inter-corporate transactions and to siphon off money, according to a report in The Economic Times. Daiichi is awaiting to get an arbitration award of Rs 3,500 from Singh brothers who according to the company did not reveal full details of Ranbaxy at the time of selling it to Daiichi. It also alleged the Singh brothers have done “questionable related-party transactions”, according to the letter it has written to the ED on 13 March. Daiichi also expresses in its letter to ED its fears over the complex web of inter-company transactions that the Singh brothers allegedly woven to swindle money. It also believes the arbitral award money would not be secure without intervention of the ED. [caption id=“attachment_4396333” align=“alignleft” width=“380”] A file image of Malvinder Singh. Reuters.[/caption] The Japanese firm’s move of writing a letter to the country’s premier anti-money laundering agency comes close on the heels of the Securities and Exchange Board of India (Sebi) and Serious Fraud Investigation Office (SFIO) conducting parallel investigations into financial irregularities at Fortis Healthcare and Religare Enterprises. On 13 February, a PTI report said that Fortis Healthcare has board accepted the resignations of Singh brothers. The board of directors of the company accepted the resignations of Malvinder, Executive Chairman and Shivinder, Non-Executive Vice Chairman, with effect from February 8, 2018, the company said in BSE filing, the report said. A day after that, the brother duo resigned from the board of Religare Enterprises. “Malvinder Mohan Singh and Shivinder Mohan Singh have stepped down from the board of directors with effect from February 14, 2018,” Religare Enterprises said in a regulatory filing, the PTI reported. The Singh brothers had jointly tendered their resignation following the Delhi High Court order upholding the Rs 3,500-crore arbitral award in favour of Daiichi Sankyo.