Malvinder (46) and his brother Shivinder — both former Fortis Healthcare promoters — besides former Religare Enterprises Ltd chairman and managing director Sunil Godhwani (58), former REL chief executive Kavi Arora (48) and former CFO of RFL Anil Saxena were arrested by the Economic Offences Wing (EOW) of the Delhi Police for allegedly diverting RFL's money and investing in other companies.
The EOW had in March last year registered a case after receiving a complaint against Shivinder, Godhwani and others from RFL's Manpreet Suri. In the complaint, Suri alleged that loans were taken by them while managing the firm but the money was invested in other companies.
"They put RFL in a poor financial condition by disbursing loans to companies
with no financial standing and controlled by them. The companies to which the loans were disbursed willfully defaulted in repayments and caused a loss to RFL to the tune of Rs 2,397 crore," the police had alleged.
On February 12, the Delhi Police had disputed Malvinder Singh’s claim in the court that he paid back the money to the entities concerned. The police said the money was still with RFL's holding company, RHC, which was controlled by Singh.
On January 29, Religare Finvest
had obtained relief from the Securities Appellate Tribunal (SAT) in the fund diversion case involving Shivinder and Malvinder Singh. “We find that the impugned orders cannot be sustained,” the SAT had held after hearing both Religare Finvest
and the Securities and Excvhange Board of India (Sebi).