Former promoters of Ranbaxy Laboratories Limited Shivinder Singh, Malvinder Singh and three others were arrested by Economic Offences Wing (EOW) of Delhi Police based on a complaint filed by Religare Finvest Limited (RFL).

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Sunil Godhwani (58), the former chairman and managing director of Religare Enterprises Limited (REL), Kavi Arora (48) and Anil Saxena, who occupied important positions in REL and RFL, were also arrested by the Economic Offences Wing for allegedly diverting money and investing in other companies.

Earlier this year, an FIR was registered following the complaint by RFL against the warring Singh brothers, Religare Enterprises Ltd's former CMD Sunil Godhwani and N.K. Ghosal, a stockbroker and associate of Shivinder Mohan Singh.

The complainant has alleged that the company and its subsidiary Religare Finvest Limited (RFL) have been cheated and its properties worth "hundreds of crores have been misappropriated, siphoned off and diverted through a labyrinth of financial transactions."

A case under various sections of the Indian Penal Code was registered "on the complaint of Religare Finvest (RFL) that Malvinder M. Singh, Shivinder M. Singh and others having control on REL, put RFL in poor financial condition by disbursing loans to entities controlled by them causing loss of Rs 2,397 crore to RFL", the Economic Offences Wing (EOW)of Delhi Police said in a tweet.

The complainant alleges in the FIR that the Singh brothers, in collusion with co-accused, had "orchestrated the financial scam in or around 2016".

It also accuses the two brothers of hatching "a well thought out and organised criminal conspiracy by which a financial scam of huge magnitude has been effected (sic)."

The complainant has sought tracing and restitution of its properties. Singh brothers were promoters of REL till February 2018.

(With inputs from agencies)

First Published:Oct 10, 2019 6:08 PM IST