NCLT Allows Shivinder To Withdraw Case Against Brother Malvinder Singh

The National Company Law Tribunal allowed Shivinder Singh to withdraw his petition he filed against brother Malvinder Singh and long-time associate Sunil Godhwani for alleged “oppression and mismanagement” of group companies.

"...my primary goal remains to address and resolve the group's issues through constructive and transparent engagement with Daiichi Sankyo and our other creditors. It is clear that my brother and I cannot do so together. To that end, I intend to use the mediation process to get to a critical decision,” Shivinder said in a press statement today. “Namely, whether my brother or I take full responsibility for resolving the group's issues with Daiichi Sankyo and other lenders."

Shivinder Singh has accused elder brother Malvinder of forging his wife Aditi Singh's signature and conducting illegal financial transactions along with Sunil Godhwani, former top executive of the family's healthcare-to-financial services empire. Yesterday, the brothers entered into a mediation, according to an NCLT filing, after “repeated urging” by their mother.

“In the event mediation fails, I intend to reassess and start a fresh action if that is what it takes to address all issues and start afresh,” said Shivinder Singh.

Shivinder and Aditi Singh and their company Shivi Holdings Pvt. Ltd. had alleged that RHC Holdings Ltd.'s affairs were conducted in a manner contrary to its interests, according to the petition filed on Sept. 4 with the National Company Law Tribunal. Both the brothers have equal stake in RHC Holdings, the erstwhile parent of Religare Enterprises Ltd. and Fortis Healthcare Holding Pvt Ltd., through their respective investment arms.

“To ally justifiable skepticism, let me be clear: the decision to disassociate from my brother and tread an independent path stands,” Shivinder said in today's statement.

The Singh brothers, heirs to the multi-billion dollar empire, have lost control of Fortis Healthcare Ltd. and Religare Enterprises after the lenders converted pledged shares and are now being investigated for alleged financial irregularities. They also face more than Rs 3,500-crore arbitration payment to Japan's Daiichi Sankyo for allegedly hiding facts at the time of sale of erstwhile Ranbaxy Laboratories Ltd.