Millennium Post

Sebi asks Fortis to recover `403 cr from Singh brothers, seven others

New Delhi: Markets regulator Sebi Friday directed Fortis Healthcare and Fortis Hospitals to take necessary steps to recover Rs 403 crore, along with interest, from Shivinder Mohan Singh, Malvinder Mohan Singh and seven other entities within three months.

The Sebi, through an order passed in October this year, had asked Fortis Healthcare to recover the amount.

The fresh order comes after the two companies made representation to the markets regulator.

In the submission to Sebi, the firms said that the recovery of outstanding amount should be carried out by Fortis Hospitals (FHsL)instead of Fortis Healthcare (FHL), which would ensure that such sums are actually recovered and reflected in the balance sheet of Fortis Hospitals.

"The outstanding amount of Rs 403 crore ... had been advanced by FHsL itself to Best, Fern and Modland. As such, the outstanding amount is required to be returned to FHsL itself. Since the loan of outstanding amount had been made solely by FHsL, on its own account, upon recovery of the outstanding amount by FHsL, there would not be any consequent requirement upon FHsL to pay the same to FHL.

"Consequently, FHsL and not FHL would be the relevant entity which would be required to take steps for the recovery of the outstanding amount," as per the submission.

Earlier, Fortis Hospitals was also required to repay the amount.

The regulator has barred Singh brothers from associating themselves with the affairs of Fortis Healthcare and Fortis Hospitals in any manner whatsoever, till further directions.

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