The Delhi High Court has ordered a court-monitored forensic audit to trace and reconstruct complex asset transfers, share transactions, and the alleged dissipation of Fortis Healthcare Limited (FHL) shares linked to former promoters Malvinder and Shivinder Singh.
Key Aspects of the Court Order
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Scope of the Audit: Presided over by Justice Subramonium Prasad, the court directed a thorough investigation into transactions involving Fortis Healthcare, RHT Health Trust, and IHH Healthcare, alongside dealings tied to the Singh brothers.
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Auditor Appointment: The court appointed a premier chartered accountancy firm to trace the movement and restructuring of assets that occurred during and after the multi-billion-dollar corporate dispute.
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Background of the Dispute: The long-running litigation stems from Japanese drugmaker Daiichi Sankyo’s 2008 acquisition of Ranbaxy Laboratories from the Singh brothers. Daiichi subsequently secured a massive ₹3,500+ crore ($4.6 billion international) arbitration award against the brothers after alleging they concealed critical U.S. regulatory investigations regarding Ranbaxy at the time of the sale.
Objective and Next Steps
The forensic audit aims to establish an accurate paper trail regarding how substantial promoter shareholdings and corporate assets were transferred or encumbered amidst mounting debt and legal penalties. While ordering the audit to uncover financial movements, the court’s latest directives continue to navigate the intricate web of recovery proceedings initiated by Daiichi to enforce its arbitral award against the erstwhile promoters.
