1 to 66 hospitals set up in 10 years, 2 brothers come to the prison door due to mistakes-Fortis Hospital

Highlights:-

• Malvinder and Shivinder Singh, once facing charges of misappropriation of crores, were once the owners of the Arab kingdom.
• Singh Brothers co-accused financial scam in 2016
• Shortly after selling Ranbaxy in 2008, he founded the Special Purpose Vehicle Company in Mauritius.
• When Ranbaxy was sold by Malvinder and Shivinder Singh to Japanese company Daiichi Sankyo for $ 2.4 billion in 2008

Malvinder Singh and Shivinder Singh, former promoters of Fortis, who owned the Arab kingdom, were arrested by the police for financial fraud. While they had only one hospital in 2001, the figure reached 66 in just 10 years. Despite the tremendous progress, the Singh brothers made two such mistakes, which brought them to the prison door. Four accused, including Shivinder Singh, were arrested from Delhi on Thursday and Malvinder Singh from Ludhiana.

This is the charge on the Singh brothers

It is alleged that Singh Brothers committed financial scams in 2016 by colluding with co-accused. It alleges that the two brothers 'deliberately planned a criminal conspiracy, through which a large financial fraud was committed.' The complainant said that despite the warnings of RBI, Singh Brothers did not take the step of reform deliberately and continued to do 'financial scams'.

Shortly after selling Ranbaxy in 2008, he founded the Special Purpose Vehicle Company in Mauritius, but the crisis had just begun. Let us know the complete story of the business of these brothers.

When the company was sold in 2008

Ranbaxy, a company formed by Dada Bhai Mohan Singh and father Parvinder Singh, was the country's largest pharmaceutical company when it was sold by Malvinder and Shivinder Singh to Japanese company Daiichi Sankyo for $ 2.4 billion in 2008. Then the question also arose why the Singh brothers were selling the flagship company and what would they do after that? After this, whatever happened in the last 10 years, the stars of Singh Singh got mixed up in Khak.

There was a heavy charge of misappropriation of funds

The Singh brothers are facing charges of rigging the funds of Religare. The Ranbaxy deal that was praised in 2008 later became a sore throat. By 2014, after the deal, four plants of Ranbaxy had been banned by the US drug regulator due to incorrect manufacturing practices and incorrect data related to drugs. Daiichi then launched a lawsuit in the International Arbitration Court against the Singh brothers, accusing them of hiding information during the deal. The Japanese company won in this and the court asked the Singh brothers to give Daiichi Rs 3,500 crore. The Singh brothers challenged the Arbitration Court's decision in the Delhi High Court to avoid this.

First mistake, indiscriminate expansion was overshadowed

After leaving Ranbaxy, the Singh brothers started expanding the hospital chain business in India and abroad and entered the financial services business under the Religare brand. In 2001, the Singh brothers had a hospital, which increased to 66 by 2011. The Singh brothers bought a 25% stake in Parkway Hospital, Singapore, for $ 650 million. Shortly after selling Ranbaxy in 2008, the Singh brothers set up a special purpose vehicle (SPV) called RHC Financial Services in Mauritius.

Sometime later SPV had 6 more companies with Fortis International, which it had bought from others. These companies had or were building hospitals in Sri Lanka, Hong Kong, Australia, and Singapore. By 2011, Fortis, listed on the stock market, had a debt of Rs 7,000 crore due to the indiscriminate expansion of the hospital chain business. On the other hand, the financial services business has never been able to stand strong.

Second mistake, drowned in heavy debt

By 2011, the Singh brothers had realized that the debt would sink. He then started selling the business of the group one by one to reduce it. The first Australian unit was sold to Dental Corporation. Thereafter to Religare Health Trust listed in Singapore for Rs 2,200 crore. Than Rs 3,700 crore equity was set aside in Diagnostic Business SRL. On all these, the debt on Fortis declined to Rs 2,300 crore.