"Decision To Part Ways With Brother Stands," Says Fortis' Shivinder Singh

NDTV Profit Team

14 Sep 2018, 05:23 PM IST

However, Shivinder Singh (left) made it clear that he has snapped all business ties with his brother.

Shivinder Singh said that he made the decision to file the case against his brother with a "heavy heart and after careful deliberation". "The decision to withdraw was weighed equally seriously. I did so because my primary goal remains to address the group's issues through constructive and transparent engagement with Daichii Sankyo and our other creditors. It is clear that my brother and I cannot do so together," Shivinder Singh added.
"To that end, I intend to use the mediation process to get to a critical decision. Namely, whether my brother or I, take full responsibility for resolving the group's issues with Daiichi Sankyo and other lenders," Shivinder Singh said.
The Singh brothers sold their controlling stake in drug maker Ranbaxy Laboratories, founded by their family, to Japan's Daiichi Sankyo Co, in 2008. Both of them have equal stakes in RHC Holdings, but lost their control of hospital chain Fortis Healthcare and Religare Enterprises after lenders converted pledged shares.
"In the event mediation fails, I intend to reassess and start a fresh action if that is what it takes to address all issues and start afresh," said Shivinder Singh.
However, Shivinder Singh made it clear that he has snapped all business ties with his brother. "To ally justifiable scepticism, let me be clear: the decision to disassociate from my brother, and tread an independent path stands," he said.
On Thursday, Shivinder Singh had announced that he had filed a fresh plea in the National Company Law Tribunal (NCLT) to withdraw the petition against his brother.
Last week, Shivinder Singh, his wife Aditi Singh and their company Shivi Holdings filed the case in the NCLT against Malvinder Singh and ex-Religare chief Mr Godhwani, alleging mismanagement of RHC Holdings, including embezzlement of funds and forgery, which led the group into a debt trap, reported news agency Indo-Asian News Service. The two brothers, who now own less than 1 per cent of Fortis, have denied allegations that they siphoned funds from the hospital operator.
Shivinder Singh had filed the case in the wake of financial troubles at group businesses RHC Holding, Religare Enterprises Fortis Healthcare, according to a report by news agency Reuters.
"The collective, ongoing, actions of Malvinder and Sunil Godhwani led to a systematic undermining of the interests of the companies and their shareholders," Shivinder Singh had said earlier.
As on August 27, Malvinder Singh and Shivinder Singh were the promoters of Religare on behalf of PS Trust while RHC Finance and RHC Holding were the promoter groups, according to data available on bourses, reported news agency Press Trust of India. (With agencies inputs)