The Delhi High Court on Tuesday allowed the sale of former Ranbaxy promoter Malvinder Singh's listed shares in Fortis Healthcare to repay the Rs 3,500 crore arbitration award in favour of Japanese pharmaceutical major Daiichi Sankyo.

It directed the money from the sale to be deposited with the court registry.

The court has already allowed the sale of unencumbered shares held in listed companies by Shivinder Singh.

The Delhi High Court also issued a notice on Daiichi's plea and a plea filed by Participation Finance and Holdings India Pvt. Ltd and Strategic Credit Capital Pvt. Ltd seeking a halt on the Fortis Healthcare sale.

The two strategic investors fear the dilution of the Fortis brand if it is sold to a third party.

The Delhi High Court had ruled earlier, allowing the Daiichi Sankyo's plea which sought Rs 3,500 crore arbitral award against the Singh brothers who allegedly concealed details on selling Ranbaxy Laboratories products in 2008. The authorities recently asked the Singh brothers to declare their assets.

The Delhi High Court will hear the case between Daiichi and Singh brothers on May 30.

First Published:May 15, 2018 9:46 AM IST