Indian Court Orders Probe Into Fortis Asset Diversion Case
India’s Delhi High Court has ordered a forensic audit into alleged asset dissipation involving former promoters of Fortis Healthcare, Malaysia-based IHH Healthcare said on Tuesday. The investigation will examine the disposal of the former promoters’ Fortis shareholding, the subsequent change in control of the hospital operator and the role of various stakeholders.
The case stems from a decade-long dispute involving Japanese drugmaker Daiichi Sankyo and former Fortis promoters Malvinder Mohan Singh and Shivinder Mohan Singh. Daiichi has alleged that the Singh brothers moved or disposed of assets that could have been used to satisfy a 2016 Singapore arbitration award requiring them and related parties to pay 25.62 billion rupees. Daiichi says the outstanding amount has since increased to about 53 billion rupees.
IHH acquired around one-third of Fortis Healthcare in 2018, triggering a mandatory offer for an additional 26% stake, though the process was halted after Daiichi filed a contempt plea. IHH said it was not a party to the execution proceedings against the former promoters, while the court has ordered examination of its stake acquisition through Northern TK Venture. Fortis said the judgment does not impose any monetary liability on the company.
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