Daiichi Sankyo objects to Singh brothers’ proposal to settle misappropriation of funds case with Religare

In another hurdle for former Ranbaxy owners, Malvinder and Shivinder Singh (Singh brothers), Japanese Drugmaker, Daiichi Sankyo today raised its objections against the brothers’ attempt to reach a settlement in the misappropriation of funds case by Religare FinVest Ltd.

Appearing before the Delhi High Court in connection with the ongoing execution proceedings against the brothers and several others for the Rs 3,500 crore arbitration award, Daiichi Sankyo stated that any settlement proposing payment of money by Singh Brothers to Religare FinVest would be against the Court’s order directing Singh Brothers to not dispose of, alienate, encumber either directly or indirectly or otherwise part with the possession of any assets as well their interest in any company or trust.

Agreeing with Daiichi Sankyo, a Single Judge Bench of JR Midha remarked,

“This would be in the teeth of the order passed by the Court..”

Senior Advocates Arvind Nigam and Arun Kathpalia contended that no settlement between Singh Brothers and Religare FinVest could go through without the permission of the High Court.

After a brief hearing, Daiichi Sankyo informed the Court that it would be filing a formal application to this effect.

Meanwhile, the Court of Chief Metropolitan Magistrate Deepak Sehrawat was today informed that settlement talks between Singh Brothers and Religare FinVest remained inconclusive.

Yesterday, a production warrant was issued by the CMM against Singh brothers in order to facilitate settlement talks between them and the complainant, Religare FinVest.

The CMM thus proceeded to list the brothers’ application for an interim bail for hearing on October 25. Hearing on the application was earlier deferred by the CMM to afford an opportunity to parties to sit across the table.

Singh Brothers have sought an interim bail of two months to negotiate a settlement with Religare FinVest.

“..a settlement will be a more meaningful resolution of the instant case and thus, the Applicant ought to be released on interim bail to facilitate a settlement without prejudice..”, the application reads.

As per the FIR, Singh Brothers, in collusion with former Religare CMD Sunil Godhwani and other accused, siphoned off funds of Religare FinVest through unsecured loans to the tune of Rs 2,397.

The Economic Offences Wing of the Delhi Police had arrested the Singh brothers, Godhwani and others earlier this month in a complaint by Religare FinVest which was under the absolute control of the Singh Brothers.

They were subsequently remanded to police custody for four days which was subsequently extended by another two days.

Last week, Singh brothers along with other accused were remanded to judicial custody till October 31.

Malvinder Singh and Shivinder Singh are represented by Advocates Manu Sharma and DP Singh, respectively.

P&A Law Offices is representing Daiichi Sankyo.