An Indian billionaire’s journey from glory to prison in just over a decade
Malvinder and Shivinder were heirs to age old family business started in 1947
Two cousins, Ranjit and Gurbax, started drug distribution company named Ranbaxy in India. However, they had to sell it to Bhai Mohan Singh after the company ran into debt piles in 1947. Few years later, Bhai Mohan's son, Parvinder Singh, took charge of the company and started setting its plant at an international location. Parvinder Singh's uncertain death in 2000 transferred the control of the business to his two sons Malvinder and Shivinder.
They sold their 33.5% to Japan’s Daiichi Sankyo for $2.4 billion
The Singh brothers owned 33.5% stake in their father's company and gathered a lot of attention when they sold their stake to Japan's Daiichi Sankyo for a whopping $4.6 billion, of which $2.4 billion went to their pockets. They invested the money the expansion of Fortis and made it India's largest hospital chain. Together they took the growth of two pubic firms- Fortis Healthcare Ltd. and Religare Enterprises to new levels.
Daiichi complained that it had been conned by the Singh brothers who withheld information
But soon after Ranbaxy’s sale, Daiichi complained that it had been conned by the Singh brothers who withheld information. The US drug regulator in the form of an import ban on Ranbaxy citing poor quality of its drugs and the company had to shell out $500 million to restore operations. Daiichi sued the Singh brothers in 2013 and sold Ranbaxy to Sun Pharma in 2014.
The duo lost the arbitration against Daiichi and where asked to pay ₹3,500 crore
Subsequently, the duo lost the arbitration against Daiichi and where asked to pay ₹3,500 crore — and the decision was upheld by the Delhi High Court in 2018. On 9 October 2019, the Delhi High Court also ordered the family’s flagship company to pay up a whopping ₹6,000 crore in settlement of the case filed by Daiichi.
The duo lost the arbitration against Daiichi and where asked to pay ₹3,500 crore
Subsequently, the duo lost the arbitration against Daiichi and where asked to pay ₹3,500 crore — and the decision was upheld by the Delhi High Court in 2018. On 9 October 2019, the Delhi High Court also ordered the family’s flagship company to pay up a whopping ₹6,000 crore in settlement of the case filed by Daiichi.
In between the accusations, Shivinder accused his elder brother Malvinder of siphoning ₹1223 crore
In the run up, there was some infighting too. Shivinder, in 2018, accused his elder brother Malvinder of siphoning ₹750 crore along with Godhwani, the former Managing Director and Chairman of Religare) and another ₹473 crore from Fortis Healthcare to RHC Holding Pvt Ltd.
The Singh brothers fall from grace has been just as fast and fascinating as their rise was.
On October 10, the Singh brothers were arrested for allegedly diverting funds from Religare. The case against them in connection with Fortis is still underway. The Singh brothers fall from grace has been just as fast and fascinating as their rise was.
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