Delhi High Court Orders Attaching Unencumbered Assets Of Singh Brothers’ Holding Companies
Delhi High Court orders attaching unencumbered assets of Singh brothers’ holding company.
The Delhi High Court ordered attaching all unencumbered assets of RHC Holdings Pvt. and Oscar Investments Pvt., the two holding companies of the Singh brothers, to execute the Rs 3,500-crore arbitral award that Japan’s Daiichi Sankyo won against them for hiding information while selling Ranbaxy Laboratories Ltd.
The court also restrained RHC Holdings from using bank accounts except for payment of salaries and statutory dues. Malvinder Singh and Shivinder Singh will have to submit a list of their personal unencumbered assets.
Daiichi won the arbitral award at the Singapore tribunal. It stemmed from Ranbaxy’s $500-million settlement with the U.S. drug regulator for falsifying data and lack of proper manufacturing standards. The Japanese drugmaker claimed that the Singh brothers, then promoters of Ranbaxy, had kept it in the dark about it. It later sold the company to Sun Pharmaceuticals in 2014 for $3.2 billion compared with $4.6 billion it had paid to acquire the drugmaker in 2008.
The Supreme Court earlier rejected a plea by the brothers challenging the Delhi High Court order holding that the arbitral award was enforceable in India. That comes even as the Singh brothers also face allegations of siphoning funds from Fortis Healthcare Ltd., India’s second largest hospital chain, and their financial services arm Religare Enterprises Ltd.