Daiichi seeks forensic audit into Fortis-IHH transactions – ET HealthWorld

It also sought an investigation into any nexus between RHT with former FHL promoters – Malvinder and Shivinder Singh – and others, as directed by the Supreme Court on September 22.

Daiichi is seeking an audit of the dilution of FHL shareholding, alleged violation of undertakings and assurance by the former FHL promoters, the transaction between FHL and IHH, and an alleged clandestine transfer of ₹4,666 crore to RHT Singapore.

In another application, Daiichi appealed to the HC to appoint forensic auditors to look into the conduct of 17 banks and financial institutions including HDFC Ltd, Yes Bank, Axis Bank, Citicorp Finance, Aditya Birla Sun Life Insurance Co and Kotak Mahindra Investments.

The petition alleged these lenders had invoked the pledges on the shares of FHL owned by Fortis Healthcare Holding, in violation of the SC and HC orders and the undertakings given by the Singh brothers to the courts, and granted loans to loss-making entities without conducting due diligence.

Daiichi Sankyo is pursuing the enforcement of a ₹3,500-crore arbitration award against the Singh brothers pronounced by a Singapore tribunal for concealing information when they sold Ranbaxy Laboratories to the Japanese company for $4.6 billion in 2008.

Such extensive forensic audits under the supervision of retired high court judges, according to Daiichi, were paramount to ensure the sufficient inflow of monies to satisfy the arbitration award that it won against the Singh brothers.