Court sends ex-Fortis promoters Malvinder, and Shivinder to 14-day judicial custody

New Delhi: A Delhi court Thursday remanded former Fortis Healthcare promoters Malvinder Singh and his brother Shivinder to 14-day judicial custody for allegedly misappropriating funds of Religare Finvest Ltd (RFL).

Metropolitan Magistrate Nishant Garg also sent three others, Sunil Godhwani, Kavi Arora and Anil Saxena, to judicial custody till October 31.

The Singh brothers had moved a bail plea which will be heard, along with that of Arora, on Friday.

The Economic Offences Wing (EOW) of Delhi Police had on Tuesday told the court that Singh brothers 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 investigating officer of the Delhi Police (EOW), in the remand application, had sought custodial interrogation of the accused 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.

The police plea stated that custodial interrogation was required to confront the directors of the shell entities with the accused with respect to their association. Counsel for Malvinder did not oppose the plea, saying investigation conducted so far has brought forth material which may also benefit the accused, adding that he already shown some links to the police with regard to where his money has gone.

Malvinder (46), Shivinder (44), Godhwani (58) and Arora (48) and Saxena, were arrested by the EOW for allegedly diverting the money and investing in other companies.

The court had on Tuesday extended by two days the police custody of Singh brothers and Godhwani after the probe agency sought their custody saying that new material has come up in the case. Arora and Saxena, were also sent to 2-day judicial custody by the court.

Senior advocate Vikas Pahwa, appearing for RFL's Manpreet Singh Suri, who filed the complaint in December last year, had earlier alleged that the case was a serious economic offence. Religare has accused them of diverting funds, claiming that loans were taken by Shivinder while managing the firm but the money was invested in other companies.