New Delhi: Malvinder Singh and his brother Shivinder Singh, the Ex-Ranbaxy promoters have been held guilty by the Supreme Court in a case filed by the Japanese firm, Daiichi Sankyo. Daiichi had filed a petition against the Singh brothers for non payment of Rs 3,500 arbitration award. The Supreme Court also held Fortis Healthcare guilty of contempt.
The Singh brothers sold Ranbaxy to Daiichi in 2008. It was eventually purchased by Sun Pharmaceuticals for $3.2 billion. Daiichi accused the Singh brothers of repressing facts during the sale. One of them for instance was the severe regulatory issues with the US Food and Drug Administration faced by Ranbaxy’s manufacturing plants.
The Singh brothers can get away from the contempt by depositing Rs 1,175 crore each. The duo resigned from the board of Fortis Healthcare in February 2018.
A Singapore arbitration tribunal asked the Singh brothers to pay Rs 2,562 crore to Daiichi Sankyo in 2016 but the brothers challenged the tribunal’s decision before courts in India and Singapore. The Delhi High Court upheld the award in January 2018.