The Delhi police have arrested Ranbaxy’s Singh brothers and three former executives of Religare Finvest in relation to a fraud complaint filed by the company. RFL is alleged to have made loans to group companies without taking adequate collateral when the Singhs were promoters. The borrowing firms wilfully defaulted on the loans, causing RFL a loss of ₹2,400 crore. The arrest marks an unprecedented low for the Singhs, grappling with bad news (see timeline) since losing an arbitration award to Daiichi Sankyo, which bought Ranbaxy in 2008. The brothers themselves have reportedly come to blows.
The economic offences wing of the Delhi Police on Thursday arrested former Religare promoter Shivinder Mohan Singh and the company’s ex-CMD Sunil Godhwani for alleged default in repayment of dues and causing wrongful loss of Rs 2,397 crore to Religare Finvest Ltd (RFL).
Late on Thursday night, Shivinder’s elder brother and Religare co-promoter Malvinder, also an accused in the case, was detained from Ludhiana.
Two former top executives of the company, Kavi Arora and Anil Saxena, were also arrested for their alleged involvement in the case. The police action against the brothers marks a stunning fall for one of the best-known business families in Delhi and the country.
Malvinder and Shivinder’s grandfather Bhai Mohan Singh had set up Ranbaxy, which was the country’s largest pharma company, and the family also founded Fortis, which runs a chain of hospitals across India.