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Singh brothers seek interim bail before Delhi court, offer settlement

Malvinder and Shivinder Singh have been in Tihar jail since Thursday after the court ordered 14 days of judicial custody for both in connection with diversion and misappropriation of funds pegged at Rs 2,400 crore.

ET Bureau|
Updated: Oct 19, 2019, 12.08 AM IST
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Religare case: Singh brothers seek interim bail, offer settlement
Religare case: Singh brothers seek interim bail, offer settlement
A Delhi district court on Friday deferred the bail plea filed by former Ranbaxy promoters Malvinder and Shivinder Singh. The Singh brothers in their plea mentioned that they want to settle the matter. The court has now summoned them along with other accused and the management of Religare Finvest Ltd for further hearing on Tuesday.

The brothers have been in Tihar jail since Thursday, as court ordered 14 days of judicial custody for both in connection with diversion and misappropriation of funds pegged at Rs 2,400 crore. Along with them Sunil Godhwani, former Religare Enterprises Ltd chairman and managing director, Kavi Arora, former CEO and Anil Saxena, former REL CFO were also sent to judicial custody till 31 Oct. All five will be produced in the court on Tuesday.

The EoW arrested them last week following a complaint by Religare Finvest Ltd. The EoW which has been investigating the case, accused that the Singh brothers along with others “wilfully defaulted in repayments and caused wrongful loss to RFL to the tune of Rs 2,397 crore.” It also said that the funds were diverted to promoter related companies.

The Singh brothers and Godhwani have been in the police remand since 11 Oct. Earlier on Tuesday the EoW had filed a remand application to extend their custody. It claimed that “during the police investigation the accused persons disclosed that the amount to the tune of Rs 1000 crore approximately was transferred from entities linked to corporate loan book”. These entities which were named in the application were Modland wears Pvt Ltd, Devera developers Pvt Ltd, Fern healthcare Pvt Ltd, Best healthcare Pvt Ltd, Adept Lifespaces Pvt Ltd, Rosestar marketing Pvt Ltd,” the application said.

The EOW had said that it needed more time to “identify the persons to whom the amount was disbursed and to ascertain the purpose of giving the said amount”. “The amount has been transferred to various persons which has been transferred from the complainant company to these shell entities and finally the said amount was misappropriated/siphoned.”

The police investigative agency sought extension of remand for “sustained interrogation,” to find the trail of “cheated money” to ascertain the purpose of cheating, to confront the directors of shell entities and to ascertain the role of co-conspirtors.

It found a “concerted effort” on the part of the promoters to not report the actual extent of the exposure on CLB and by doing this they concealed material facts from both the RBI and the shareholders. “It appears that Malvinder and Shivinder in conspiracy with Sunil Godhwani being in control of the complainant company caused it to give unsecured, high value purported loans to shell companies and related known entities of Malvinder and Shivinder,” said the police FIR.

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