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Amidst Rising Debts, Malvinder Singh Restrained From Selling Off Assets [Read Order]

Akanksha Jain
21 Feb 2018 11:27 AM GMT
Amidst Rising Debts, Malvinder Singh Restrained From Selling Off Assets [Read Order]
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Spelling trouble for former CEO of Ranbaxy Malvinder Mohan Singh, the Debts Recovery Tribunal (DRT) has restrained him or his agents from selling or alienating a posh property in South Delhi, besides various priced artworks, for defaulting in repayment of loan granted by Yes Bank.

Tribunal’s Presiding Officer GVK Raju passed the order on an application moved by Yes Bank seeking recovery Rs 570 crores (approx.) granted to Oscar Investments Pvt. Ltd, his holding firm.

Yes Bank was represented by senior advocate Rajeeve Mehra, briefed by Karanjawala & Co, partner Seema Sundd, senior associates Davesh Bhatia & Shweta Priyadarshini and associate Ritu Raj.

The bank filed the application before the tribunal at a time when the Singhs’ debts are rising and they - him and brother Shivinder Singh - are looking at selling off their assets.

The bank told the tribunal that Malvinder Singh is trying to alienate the movable and immovable property and if they are permitted to do so, the bank would suffer irreparable losses.

“In the facts and circumstances of the case, defendants, their men or agents are restrained from alienating or creating any sort of encumbrance in respect of immovable property, Rajesh Pilot Marg until further orders,” the tribunal ordered.

They have also been restrained from creating any encumbrance in respect of shares owned by them in Religare Group Companies, Oscar Investments, Healthfore Technologies, Fortis Healthcare Ltd, Malav Holdings Ltd etc.

The same is the order with respect to the artworks owned by them.

They have been directed to file an affidavit disclosing their assets – all movable and immovable-- within 10 days.

The order could mean bigger troubles for Malvinder Singh who recently suffered a setback when the Delhi High Court upheld the international arbitral award of Rs 3,500 crore against him and brother Shivinder Singh.

The high court had held the award to be enforceable after hearing a petition filed by Daiichi seeking enforcement and execution of the foreign award dated April 29, 2016, passed by a tribunal in Singapore after the former promoters were found to have intentionally withheld a self-assessment report of fraudulent practices at Ranbaxy.

The Singh brothers had made an exit from Ranbaxy just before the US Food and Drug Administration banned imports at two of its Indian plants.

Read the Order Here

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