The Delhi Police's Economic Offences Wing (EoW) arrested the Singh brothers, Godhwani, Arora and Anil Saxena on October 10, charging them with fraud and misappropriation Rs 740 crore of Religare
Finvest, a subsidiary of REL, funds.
Finvest had last December filed a criminal complaint against the Singh brothers, Godhwani and others for cheating, fraud and misappropriation of company funds to the tune of Rs 740 crore.
The misappropriation came to light after an independent forensic audit was conducted by the new board. The audit followed the exit of Singh brothers from the company in February.
During an earlier hearing on Tuesday, the EoW had told the Chief Metropolitan Magistrate of Saket District Court that Singh brothers had, during interrogations, disclosed that an amount of nearly Rs 1000 crore had been transferred to various persons from entities linked to the corporate loan book of REL and Religare Finvest Limited.
REL had filed the complaint with the EOW of Delhi Police following an observation made by the Delhi High Court earlier. During a hearing on Daiichi Sankyo's plea for payment of Rs 3,500-crore arbitration award due to them against the Singh brothers, Justice Rajiv Shakdher had observed that if REL was serious about the allegations of defrauding against the former promoters of the company, it should file a police complaint about the same.
Religare moved court, alleging that the Singh brothers, in their capacity as promoters of Religare Enterprises, had siphoned off money from the company by issuing non-convertible redeemable preference share (NCRPS) for themselves and later redeeming them.