Japanese pharma major on Tuesday alleged that former promoters of Ranbaxy Laboratories Ltd, Malvinder and Shivinder Singh, had diverted funds to the extent of Rs 2,800 crore in a development that could impact Daiichi Sankyo's Rs 3,500 crore international arbitration award against Singh brothers.

Daiichi Sankyo's lawyers argued that Singh brothers and their holding companies used siphoned money to purchase real estate in their personal capacity.

The Delhi High Court has taken cognizance of these charges and questioned the Singh brothers if they should go ahead and freeze the real estate assets that have purchased from the said funds.

However, the Delhi High Court issued clear direction for Singh brothers, RAC Holdings and Oscar Investments to come back and file a reply to these concerns that have been raised by the Daiichi Sankyo.

The Singh brothers will have to come back with a plausible reply by November 13, 2018 when the hearing resumes.

On October 18, Securities and Exchange Board of India (Sebi) directed the Singh brothers and eight other entities to repay Rs 403 crore along with interest to Fortis Healthcare Ltd.

All the entities have prima facie acted in a fraudulent manner in diverting funds of around Rs 403 crore from Fortis Healthcare, a listed company, for the ultimate benefit of parent company—RHC Holding Pvt. Ltd—and group company—Religare Finvest Ltd—violating the securities laws, Sebi said

First Published:Oct 23, 2018 6:49 PM IST