Delhi HC restrains former Ranbaxy promoters to dilute or sell assets
Malvinder Singh (R) and Shivinder Singh | Photo Credit: Reuters

The Delhi High Court, on Monday, directed former promoters of Ranbaxy Laboratories Ltd, Malvinder Mohan Singh and Shivinder Mohan Singh, to disclose their assets within a week, while restraining them from selling any asset without the court’s permission.

The Singh brothers had moved the court in August 2016 challenging an order by the Singapore International Arbitration Centre, which had slapped a fine of Rs 2,563 crore ($385 million) on them for concealing facts when they had sold their stake in erstwhile Ranbaxy Laboratories Ltd to Japan’s Daiichi Sankyo Co Ltd in 2008.

They had argued that the arbitration award to Daiichi Sankyo cannot be enforced under Indian law.

In early January, the Indian subsidiary of Daiichi Sankyo had sought the court’s intervention for an interim injunction against Malvinder and Shivinder Singh from selling a stake in Fortis Healthcare Ltd and Religare Finvest Ltd.

Subsequently, on 23 January, the court had directed the Singh brothers to disclose the value of unencumbered shareholding in various entities. However, the court found their disclosure to be inconsistent.

Justice S Muralidhar also said that they cannot create any third party rights on any of their assets till the dispute is resolved. The court will hear further arguments on 20 March.

Senior Counsel, Dr Abhishek Manu Singhvi and Rajiv Nayyar, who are representing the Singh brothers, assured the court that their clients will furnish the details of all movable and immovable properties in two sealed covers within a week.

The court further directed the chartered accountants of RHC Holding Pvt. Ltd, where the Singh brothers have significant shareholding, and its subsidiary companies, to submit certificates disclosing the book and market value of all unencumbered assets.

Daiichi and the Singh brothers have been locked in the arbitration case since 2013.

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