Malvinder Singh and Shivinder Singh, the former promoters of Ranbaxy, were today condemned to 6 months in prison and told to pay a fine of Rs 5000 each within a period of 4 weeks by a Supreme Court panel consisting of Chief Justice U. U. Lalit, Justice Indira Banerjee, and Justice K. M. Joseph.
Facts
These brothers had disobeyed the Supreme Court's decision to maintain the status quo and had transferred and converted assets merely to breach the rights of Daiichi Sankyo, which was in violation of the court's order prohibiting them from selling their shares in FHL.
Because the Singh brothers sold their majority holdings in Fortis Group, the Japanese Pharma Company claimed that the implementation of their arbitral award was in danger.
The transfer was done in a "very dubious and clandestine manner, without full facts being brought on record," according to the apex court, which found that IHH Healthcare's decision to inject 4600 crores into FHL was a violation of its earlier orders and was carried out in a dubious and clandestine manner.
The Court found that decision of IHH Healthcare to infuse 4600 crores into FHL was a violation of its previous orders, and was done in a dubious and clandestine manner.
Judgement
The Court ordered the High Court to consider engaging forensic auditors to examine the transactions the noticee banks and financial institutions engaged in to determine whether they were legitimate.
It was further ordered that the executing court may also take into account issuing the proper procedures and hiring forensic auditors to examine the transactions made between FHL and RHC and other connected transactions.
Therefore further the Supreme Court, condemned the Singh Brothers to 6 months in prison and told to pay a fine of Rs 5000 each within a period of 4 weeks each.
The bench further stated that if the defendants do not pay the money, they will face additional incarceration.
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