'Singh brothers said Rs 1,000 cr siphoned off by entities linked to loan book'

New Delhi: The Economic Offences Wing (EOW) of Delhi Police told a court here on Tuesday that Fortis Healthcare's former promoters Malvinder Singh and his brother Shivinder, arrested for allegedly misappropriating funds of Religare Finvest Ltd (RFL), have disclosed that an amount of about Rs 1,000 crore has been transferred to various persons from the entities linked to corporate loan book which was then allegedly siphoned off.

The submission was made before Chief Metropolitan Magistrate Deepak Sherawat who extended by two days the police custody of the Singh brothers and Sunil Godhwani, the former chairman and managing director of Religare Enterprises Ltd (REL).

All the three accused were produced from police custody on Tuesday. The investigating officer of the Delhi Police (EOW), in the remand application, sought custodial interrogation of the accused for two days saying it was required to identify the persons to whom the alleged siphoned off money was transferred and to ascertain the purpose of creating the shell companies.

It said, "During the course of investigation, it has been disclosed by the accused persons that an amount of approximately Rs 1,000 crore has been transferred to various persons from the entities linked to corporate loan book and finally it was siphoned off." The court said in its order, "The application of investigating officer seeking two days PC remand of the accused persons is allowed."

Kavi Arora and Anil Saxena, who occupied important positions in REL and RFL, were also sent to two-day judicial custody. Arora also moved the court seeking bail.