Ex-Ranbaxy promoters, guilty of contempt, says Supreme Court

New Delhi: Ex-Ranbaxy promoters Malvinder Singh and his brother Shivinder Singh have been held guilty by the Supreme Court of contempt of court in a case filed by Japanese firm Daiichi Sankyo.

The Supreme Court has also held Fortis Healthcare guilty of contempt.

Malvinder and Shivinder Singh can get away from contempt by depositing Rs. 1,175 crore each, the Apex court said.

Japanese drug-maker Daiichi had filed a contempt petition against the Singh brothers, accusing them of disposing of their assets in violation of a court order putting on hold the acquisition of controlling stake in Fortis by Malaysian group IHH Healthcare.

The Supreme Court has refused to end its stay on the IHH Healthcare open offer for Fortis.

The issue of the open offer will be decided when the contempt case against Fortis is heard, the court said.

The Singh brothers had been ordered to pay Rs. 2,562 crore to Daiichi Sankyo in 2016 to settle a dispute following the Japanese company’s acquisition of Ranbaxy over a decade ago.

Daiichi had accused the Singh brothers of suppressing facts during the sale, for example, that Ranbaxy’s manufacturing plants faced severe regulatory issues with the US Food and Drug Administration.

After being asked by a Singapore arbitration tribunal to pay up, Malvinder and Shivinder Singh had challenged the decision before the Delhi High Court. The High Court confirmed the fine.