Malvinder Mohan Singh and his younger brother Shivinder Mohan Singh, founders of Fortis Healthcare, resigned from the company's board. A late night Bombay Stock Exchange (BSE) filing announced the stepping down of the promoters.
"...we believe this is in the interest of propriety and good governance. It is intended to free the organization from any encumbrances whatsoever that may be linked to the Promoters," the brothers wrote in their joint resignation letter to the board of directors.
The decision was reportedly taken to insulate the company from the promoters' ongoing legal fight. Banks, according to the sources, were finding it difficult to associate with the company and even to extend working capital loan.
The Singh brothers were also the founders of the pharmaceutical company Ranbaxy. They sold their stakes to a Japanese drugmaker for $2.4 billion in 2008. Shivinder Mohan Singh founded Fortis Healthcare with his elder brother Malvinder in late 1990s.
Their resignation from the Fortis board happens days after the Delhi High Court upheld an international arbitration case award of Rs. 3,500 crore to Japanese company Daiichi Sankyo against them. - NDTV