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Shivinder Singh likens Malvinder Singh to 'Bhasmasur'; Malvinder says his brother's 'sanyas' was fake: NCLT filings

Business Today 29-10-2019

Former Religare promoter Shivinder Singh, in his NCLT filing in July, called his brother Malvinder Singh 'Bhasmasur', a mythological demon, while saying that he was suffering from a personality disorders. He had also sought a "forensic probe" of RHC Holding.

Threatening to sue the younger brother, Malvinder, in his NCLT filing in August, said he deserved the right to sue his brother for making "scurrilous insinuations". He also alleged that Shivinder was trying to take favour from Radha Saomi Satsang Beas (RSSB) because he owed its money.

The hearings in the NCLT case will be held in December.

"MMS (Malvinder Man Singh) has turned out to be the mythological 'Bhasmasur' for the RHC group. Wherever he became head of a business — Ranxbaxy, Fortis, Religare, SRL Labs Ltd — he decimated the value to zero for the RHC group," Shivinder told the NCLT filing.

Notably, both of them are currently in jail as Delhi's Saket court had sent the Singh brothers and 3 others to judicial custody till October 31 in a fund misappropriation case related to Religare Finvest Ltd. The other three accused, former Religare CMD Sunil Godhwani, and former senior executives Kavi Arora and Anil Saxena are also in jail.

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In their NCLT filings, both the brothers accused each other of large-scale fraud and corruption. Shivinder sought that Malvinder be removed as the holding company's director while urging NCLT to take over its board. He also asked the court to issue a restraining order against Malvinder from entering the RHC office and even communicating with any of its employees.

Malvinder told in his reply that Shivinder was hurling accusations to seek favours from RSSB as he wished to become its chief. He also alleged that Shivinder filed the suit against him only to stop RHC from demanding its money from Gurinder Singh Dhillon-led RSSB. He said Shivinder had done "large scale diversion of funds from FHL, RHC, REL etc to Dhillon (chief of RSSB) and the entities under his (Dhillon) control".

As per Shivinder's filing, he's a 50 per cent owner of RHC and had an established track record of value creation by building Fortis from scratch into India's second-largest healthcare chain and turning it into one of RHC's most valuable businesses before his retirement in 2015.

"The petitioner no. 2 (Shivinder) is of the firm belief that the continuous destruction of RHC's asset base can be arrested provided the 'Bhasmasur' is dislodged from the helm of affairs of RHC," said Shivinder's petition.

While denying that Shivinder was solely involved in building and running of FHL, Malvinder said: "...the Petitioner number 2 (Shivinder) had been actively involved in all businesses of the group including the Respondent no. 1 (Malvinder)." He said Shivinder was falsely claiming before all the investigating agencies, regulators and courts that he was under 'Sanyas' (asceticism) from the corporate world from January 2016 till late 2017.

Urging the court to punish him for perjury, Malvinder said Shivinder "continued as a director of all companies, listed/unlisted, in the group", and that he continued to draw Rs 43.5 lakh monthly salary from two key subsidiaries of Malvinder's company. He also said during his 'sanyas', Shivinder attended numerous board meets and used to draw all the perquisites from listed and unlisted companies, including all his foreign travels, his cars and household expenses.

He accused Shivinder of protecting Dhillon from debts and "possible investigations and liability towards Daiichi (Sankyo)." The younger brother said Malvinder had sought Rs 1,000 crore from him to cede control of RHC. Demanding status quo on its assets and shareholdings, Shivinder asked the NCLT to appoint two independent directors and change account signatories.

The Singh brothers sold Ranbaxy to Japanese drugmaker Daiichi Sankyo in 2008 for Rs 10,000 crore. In 2013, Daiichi paid $500 as felony charges in the US for selling adulterated medicines, following which it filed an arbitration case against the Singh brothers.

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