Benchmarks
Nifty23,140.5077.41

FEATURED FUNDS★★★★★

Motilal Oswal Midcap Fund Direct-Growth

5Y Return
20.4 %

Invest Now

Enter search text:

Business News›Industry›Healthcare/Biotech›Healthcare›Fortis defends itself after Supreme Court allows forensic audit, says it was "complete stranger" to Daiichi-Singh Brothers dispute

Read Today's Paper

Fortis defends itself after Supreme Court allows forensic audit, says it was "complete stranger" to Daiichi-Singh Brothers dispute
Synopsis

In a disclosure to the stock exchanges, Fortis said the Supreme Court, in its September 25 order, disposed of the company's Special Leave Petition challenging the Delhi High Court's August 31 order directing a forensic audit of the company in the matter of Daiichi Sankyo Company Limited vs. Malvinder Mohan Singh & Ors.

Reuters

New Delhi: Fortis Healthcare Limited has defended its position in the ongoing legal dispute involving Daiichi Sankyo and the Singh Brothers, asserting that it was a "complete stranger" to the underlying dispute and had no role in the alleged dissipation of the erstwhile promoters' shareholding.



In a disclosure to the stock exchanges, Fortis said the Supreme Court, in its September 25 order, disposed of the company's Special Leave Petition challenging the Delhi High Court's August 31 order directing a forensic audit of the company in the matter of Daiichi Sankyo Company Limited vs. Malvinder Mohan Singh & Ors.



While allowing the forensic audit to proceed, the Supreme Court clarified that various observations in the Delhi High Court judgment challenged by Fortis were "tentative and only for the purpose of making out a case for forensic audit".

The apex court further clarified that the forensic audit would be conducted independently and would not be influenced by those observations.



Also read | Ayush services sector growing fast; projected to hit up to USD 318 billion by 2047: Study




Fortis, in its disclosure, emphasised that the Delhi High Court had not imposed any liability, penalty or fine on the company. It further said it was never a party to the arbitration proceedings between Daiichi Sankyo and the Singh Brothers and was neither a judgment debtor nor a garnishee in respect of Daiichi Sankyo's decree.

The company also said that, as a publicly listed entity, it had no power or ability to control the transfer of shares by its erstwhile promoters, who were the owners of those shares. Fortis said it had received no money or proceeds on account of the alleged dissipation of the erstwhile promoters' shareholding.

Fortis further pointed out that after the Singh Brothers' shareholding fell below one per cent and they resigned from the Board by March 2018, institutional shareholders appointed independent directors. The independent Board subsequently undertook a competitive bidding process in June 2018 to identify and induct a new investor.



According to the company, the investment by its present promoter shareholder, Northern TK Venture Pte. Ltd., part of the IHH Healthcare Berhad group, was made through a fresh issue of equity shares in November 2018 after obtaining statutory and regulatory approvals, including those from the CCI, SEBI, stock exchanges and shareholders.



Fortis said the transaction took place several months after the Singh Brothers had ceased to have any relationship with the company and did not involve transfer of shares from them.



Also read | SC clears forensic audit of Fortis-IHH deal involving erstwhile Religare promoters Singh brothers



"The Company is confident that an independent forensic audit will attest to the above incontrovertible facts," Fortis said.



The company also reiterated its commitment to corporate governance, transparency and regulatory compliance and said it remained focused on its operations and stakeholders following its turnaround since 2018 under Northern TK Venture Pte. Ltd., part of the IHH Healthcare Berhad group.



The disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations. The company stated that the relevant event occurred on September 26.

Add as a Reliable and Trusted News Source
Add Now!

(You can now subscribe to our WhatsApp channel)

(Catch all the Business News, Breaking News and Latest News Updates on The .)

…moreless

(You can now subscribe to our WhatsApp channel)


Read More News on
Fortis HealthcareDaiichi SankyoSingh BrothersIHH Healthcare BerhadFortis Healthcare LimitedFortis share price

(Catch all the Business News, Breaking News and Latest News Updates on The .)

…moreless

Enter search text:

Stories you might be interested in