The Delhi High Court ordered the sale of unencumbered shares held in listed companies by former Ranbaxy promoter Malvinder Singh towards part payment of an arbitration award to Japanese pharma major Daiichi Sankyo. The HC had last week directed sale of unencumbered shares held by all 11 respondents, except Malvinder Singh, in all the listed companies towards the repayment of the award to Daiichi. However, such sale of shares of Malvinder Singh, former CEO of Ranbaxy Labs and the co-owner of Fortis Healthcare, could not be ordered as there was a stay granted by the Delhi Debt Recovery Tribunal in a separate case by Yes Bank. The bank is seeking to recover its ₹565-crore loan given to Oscar Investment for which Malvinder was a guarantor.
The DRT had in February restrained Malvinder Singh from alienating or creating any sort of encumbrance in respect of his immovable property including a posh property in Lutyen’s Delhi and some other assets in the bank loan default case. While directing proceeds of the sale of the shares to be deposited with the court registry, Justice Jayant Nath on Monday also directed RHC Holding and Oscar Investments, the two companies controlled by Singhs, to disclose the number of shares held by Fortis Healthcare Holding in Fortis Healthcare as on February 28, 2017, and now. Besides, the two firms have to inform the court whether these shares are encumbered or unencumbered and to what extent. Daiichi has sought execution of the HC’s January 31 order that upheld the enforceability of the ₹3500-crore arbitral award passed against Singh brothers and others. Daiichi had also approached the HC to stall a potential sale of Fortis’ hospital business to a consortium of Manipal Health Enterprises and private equity giant TPG. – Financial Express