Trying to get Fortis back on track, not going anywhere: Singh brothers

Fortis Healthcare founders Malvinder Mohan Singh and Shivinder Mohan Singh have said they are not shying from their responsibilities and even though they have resigned from the posts of executive chairman and non-executive vice-chairman, respectively, they are trying to get Fortis Healthcare back on track. Their statement comes at a time when analysts tracking the hospital chain say that the brothers are losing hold. “Matters as large and complex as the ones being faced cannot be simplistically addressed and solutions require time,” their statement said. Fortis is being compared to Satyam, which the company vehemently denies. Reports suggest that the Singh brothers diverted company funds for their own interests. It had been reported that the auditors of the company did not sign the company’s second-quarter results, as the Singh brothers did not declare where those funds were utilised. The results for the quarters ended September and December have not yet been declared by the company. The board has decided to declare the results on February 28. Leading stock exchange the NSE said on Thursday derivative trading in Fortis Healthcare would be stopped if the company failed to submit its financial results for last two quarters by March 1.

The Securities Exchange Board of India is investigating the matter. Fortis is also under the scanner of the Serious Fraud Investigation Office. Lenders invoking their pledged shares have reduced the Singh brothers’ shares to 5.87 per cent from 34.43 per cent. On February 2, the Delhi High Court had ordered the Singhs to pay ~35 billion to Japanese drugmaker Daiichi Sankyo. The amount was 35 per cent of the ~100 billion the Singhs had received for selling their stake in Ranbaxy — then valued at $4.6 billion — to Daiichi in 2008. There have been operational problems as well in the recent past. One of the major controversies had been the death of a minor in their Gurugram hospital. The hospital was blamed for medical negligence and overcharging.