Fortis Co-Founder Shivinder Singh Sues Elder Brother For "Mismanagement"

"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 reportedly said.

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Fortis Co-Founder Shivinder Singh Sues Elder Brother For 'Mismanagement'

After selling Ranbaxy, the Singh brothers got into hospitals business under the Fortis brand.


New Delhi: 

Highlights

  1. Shivinder Mohan Singh reportedly filed case against brother
  2. Singh brothers resigned as directors from board of Fortis Healthcare
  3. Court upheld Rs 3,500 crore arbitral award in favour of Daiichi Sankyo

Billionaire Shivinder Mohan Singh, co-founder of hospital chain Fortis Healthcare and former Ranbaxy promoter, has filed a case against his elder brother Malvinder Mohan Singh alleging "oppression and mismanagement" at their joint businesses - RHC Holding, Religare and Fortis.

Shivinder Singh, who has also named the former head of Religare Sunil Godhwani in the case, filed a lawsuit in the National Company Law Tribunal. 

"The collective, ongoing, actions of Malvinder and Sunil Godhwani led to a systematic undermining of the interests of the companies and their shareholders mentioned above as also the committed and loyal employees of the group," Shivinder Singh said in a statement issued on Tuesday.

The Singh brothers had resigned as directors from the board of Fortis Healthcare in February this year, following the Delhi High Court order upholding the Rs 3,500 crore arbitral award in favour of Daiichi Sankyo.

In his statement, Shivinder Singh said that while the group businesses were in "competent" hands, red flags have crept up in the group with disturbing regularity. He said the decisions taken in Religare's NBFC arm, the transaction and subsequent management of the sale of the group's then flagship - Ranbaxy to Daiichi culminated in "one of the most damaging arbitration cases in the history of India Inc."

In June, Fortis Healthcare initiated legal action to recover about Rs 500 crore allegedly taken out of the company by Malvinder and Shivinder Singh after an external investigation found "systemic lapses and override of controls" in the loan given.

The two brothers, who now own less than 1 percent of Fortis, have denied allegations that they siphoned funds from the hospital operator.

Fortis, which operates about 30 private hospitals in India, accepted an investment offer from Malaysia's IHH Healthcare Bhd in July, ending months of speculation over control of the company.

(With inputs from Reuters)



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