Delhi court sends ex-Fortis promoters Malvinder, Shivinder to 14-day judicial custody
Former promoters of Fortis Healthcare Malvinder Singh and his brother Shivinder Singh remanded to 14-day judicial custody for fund misappropriation. The Singh brothers had moved a bail plea which will be heard later.
Their counsels said that they will file for bail application tomorrow. Earlier on Tuesday the Economic Offences Wing (EOW) of the Delhi police had filed a remand application in which it claimed that “during the police investigation the accused persons disclosed that the amount to the tune of Rs 1,000 crore approximately was transferred from entities linked to corporate loan book,” it said in its remand application. These entities are Modland wears, Devara developers, Fern Healthcare, Best healthcare, Adept Lifespaces, Rosestar marketing,” the application said.
“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,” it further goes on to say.
The EOW said that they wanted the custody to be extended to “identify the persons to whom the amount was disbursed and to ascertain the purpose of giving the said amount”.
Former CEO Kavi Arora and former REL CFO Anil Saxena were also on Tuesday sent to judicial custody.
All five were arrested last week following a complaint by Religare Finvest Ltd. They were produced in a court in Saket on Tuesday afternoon.
The EOW has alleged that the accused “wilfully defaulted in repayments and caused wrongful loss to RFL to the tune of Rs 2,397 crore,” in its application filed in the court on 11 October. It also said that the funds were diverted to promoter related companies.
The police investigative agency sought extension of judicial 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-conspirators.
According to the FIR filed by the EOW, internal inquiries showed that the poor condition of the complainant company was to a large extent on account of wilful defaults on significant unsecured loans, defined for internal purposes as CLBs by borrower entities either related, controlled or associated with the promoters.