PMLA case: ED raids Ranbaxy brothers' premises
New Delhi: The Enforcement Directorate on Thursday conducted raids at several premises of former Ranbaxy CEO Malvinder Mohan Singh and his brother Shivinder Mohan Singh in connection with a PMLA case it is probing.
ED sleuths raided seven premises related to both the brothers in Delhi, including Malvinder's residence and premises related to Sunil Godhwani, formerly an Executive Director of Religare Enterprises Limited and NK Ghosal, an alleged close associate of both the brothers.
According to sources in the know, the case pertains to cheating and diversion of over Rs 700 crore. The financial probe agency had registered a money-laundering case against the pharma giant after taking cognizance of an FIR registered by the Economic Offences Wing of the Delhi Police.
The EOW complaint was registered a few months ago by a Religare subsidiary called Religare Finvest Limited. According to the complaint, both Malvinder and Shivinder had used their position at the head of the parent company to extend loans of hundreds of crores to companies known to them and firms of their close associates.
As per the complainant, both Malvinder and Shivinder had got these loans sanctioned with the knowledge and intention of diverting it for uses other than intended.
The EOW case cites at least four firms which were extended short-term loans of amounts ranging from Rs 85 crore to Rs 100 crore by Religare Finvest, in an agreement to repay the amount at an interest of Rs 14 percent per annum.
These firms allegedly admitted that they had transferred the loan amounts to third party concerns "within hours" of receiving the money, allegedly at the behest of Religare Finvest, which was being controlled by the Ranbaxy brothers at the time.
In addition, it is also alleged that these four firms were controlled by Ghoshal, a close associate of the Singh brothers and all registered to the same address.
Moreover, the company already owes Japanese company Daiichi Sankyo around Rs 3,500 crore. Daiichi had bought the Singh brothers' share in Religare and had later sued them in a Singapore tribunal that they had failed to disclose an investigation it was facing from the US Food and Drug Administration.
Hearing a Daiichi petition, seeking to recover the funds, the Supreme Court had warned the Singh brothers that they could be arrested if they failed to pay up.
