Delhi Police files new case against Malvinder, Shivinder Singh for Rs 400 cr fraud

The Delhi Police have registered a fresh FIR against Malvinder and Shivinder Singh, charging the erstwhile promoters of Religare Enterprises with criminal conspiracy, cheating, falsification of accounts, and criminal breach of trust. 

The Economic Offences Wing (EOW) of the Delhi Police filed the new case earlier this month on a complaint by Fortis Healthcare Ltd after an enquiry.

As per the FIR, the Singh brothers, who were the former promoters of Fortis, have allegedly defrauded the company of over Rs 400 crore, misappropriating the money for personal benefit and to pay back their loans. 

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"Enquiry has substantiated allegations of the complainant wherein promoters in conspiracy with their associates indulged in criminal breach of trust and criminal misappropriation by diverting the funds of the company," the FIR said, the Economic Times reported.

Malvinder and Shivinder Singh were shareholders, promoters and held top managerial posts in Fortis Healthcare Ltd. till February/March 2018. 

They are presently in prison and facing an investigation by the EOW of Delhi Police and the Enforcement Directorate (ED) in a multi-crore loan scam at Religare Enterprises. 

The Singh brothers have both earlier refuted accusations of misconduct against them.

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According to the FIR, the modus operandi adopted by both of them was that  "the inter-corporate deposits (ICDs) were advanced at the beginning of each quarter for a period of 90 days and ostensibly returned by the borrower companies by the end of the said quarter. Hence, the same were not reported as outstanding in the balance sheet."

In the following quarter, the ICDs were re-issued/rolled over. The forensic inquiry uncovered numerous emails, providing the circular movement of the ICD amounts.

"These were unlawfully and illegally done at the behest of the Singh brothers, who at the relevant time controlled the majority of the shareholding in the complainant company and were on its Board of Directors," the FIR read.