Shivinder Singh likened his brother Malvinder to the “mythological Bhasmasur” and said he possibly suffered from a personality disorder while calling for a forensic audit of RHC Holding. Older brother Malvinder said he reserved the right to sue his sibling for making “scurrilous insinuations” and that Shivinder was trying to ingratiate himself with Radha Soami Satsang Beas, which owed RHC money.
Shivinder made the accusations in a NCLT filing in July. Malvinder’s response came in August. ET has seen both documents, which haven’t been made public before.
Hearings in the case are set to resume in the NCLT in December.
The erstwhile promoters of Religare Enterprises(REL) and Fortis Healthcare(FHL) are currently in jail on charges of fund misappropriation. The Economic Offences Wing (EOW) of the Delhi Police arrested the brothers and their associates earlier this month.
Seeking the removal of Malvinder as director of RHC, the group holding company, Shivinder urged the NCLT to supersede the board and reconstitute it with persons appointed by the tribunal. Alleging that Malvinder had been “oppressive” in running RHC, Shivinder sought an injunction restraining his brother and any of his authorised representatives from interacting with RHC employees. He also demanded that Malvinder be prevented from entering RHC’s offices.
Malvinder alleged that Shivinder filed the suit only to stop RHC from demanding its money back from Gurinder Singh Dhillon, chief of the Radha Soami Satsang Beas (RSSB). Malvinder has alleged that Shivinder is appeasing Dhillon so that he can become the next RSSB head.
Shivinder had raised “frivolous and irrelevant issues with an attempt to prevaricate the issues”, Malvinder said. He accused Shivinder of “large scale diversion of funds from FHL, RHC, REL etc to Dhillon (chief of RSSB) and the entities under his (Dhillon) control”. He alleged that an unsecured advance of Rs 600 crore was given to Lowe (an entity under the control of Dhillon) by FHL. The amount was used by Dhillon to acquire 20 acres in Gurgaon. This is said to be disputed land and the deal is being probed by the CBI.
‘BID TO SHIELD DHILLON’
Malvinder alleged in his response that Shivinder wanted to “shield Dhillon from debts and possible investigations and liability towards Daiichi (Sankyo)”.
The younger brother alleged that Malvinder had made an “audacious and extravagant demand” of Rs 1,000 crore in order to cede control of RHC.
Shivinder has demanded status quo be maintained on the assets and shareholdings of RHC. He has also sought the appointment of two independent directors and an administrator to look after day-today affairs at RHC. He further demanded that RHC bank account signatories be changed to include persons appointed by the tribunal and that it summon all statutory records for safekeeping at its registry. Shivinder has also sought complete access to secretarial records, books of accounts and other information regarding RHC.
In his petition, Shivinder said Malvinder was like Bhasmasur, referring to a demon with the power to render anyone to ash.
“Wherever he (Malvinder) became head of business — Ranbaxy, Fortis, Religare, SRL Labs Ltd — he decimated the value to zero for the RHC Group,” Shivinder said in his NCLT petition. “The continuous destruction of RHC’s asset base can be arrested provided the ‘Bhasmasur’ is dislodged from the helm of affairs of RHC.”
‘PSYCHIATRIC ISSUES’
Shivinder also alleged that his brother may have psychiatric issues.
“Malvinder’s behaviour appears indicative of him suffering from either or both of certain specific personality disorders, namely antisocial personality disorder and narcissistic personality disorder,” Shivinder said. If “Malvinder was to be professionally assessed and diagnosed by an unbiased and independent clinical professional, he may be found to suffering from one or both or other personality disorder, and that appropriate care and help may be sought for him to address and manage the same.”
Shivinder also cited the “American Psychiatric Association’s Diagnostic and Statistical Manual of Mental Disorders” to buttress his claim.
In his response, Malvinder told the NCLT that he reserved the right to sue Shivinder and demanded that the accusations be “expunged/deleted”.
Malvinder used RHC as his “personal fiefdom” and his actions in relation to the affairs of RHC were “harsh, burdensome, oppressive, prejudicial and gravely harmful”, Shivinder alleged. Malvinder had wrongfully transferred 3 million shares of Ranbaxy Laboratories held by RHC to Malav Holdings, he said. Malvinder denied this.
Shivinder said he’s been denied his “rightful voice” and was forced to approach the NCLT to avoid the “otherwise inevitable insolvency of RHC and further prejudicing the interests of RHC and all its stakeholders”. He alleged that Malvinder had stopped board meetings from being held for over nine months, attaching emails sent by him to his brother to back up the claim.
RANBAXY SALE
The brothers sold Ranbaxy Laboratories to Daiichi Sankyo for Rs 10,000 crore in 2008, an acquisition that turned sour. The Japanese drug maker had to pay $500 million in 2013 to settle a case in the US against Ranbaxy over felony charges that included making and distributing adulterated medicines. Daiichi Sankyo won an arbitration suit against the Singh brothers over allegations of fraud related to the deal. They owe the Japanese company $500 million on account of this. Sun Pharmaceuticals acquired Ranbaxy in 2016.
Malvinder also alleged that Shivinder didn’t disassociate himself from the business in 2016 and 2017, when he was supposed to have increased his engagement with the Radha Soami Satsang Beas.
Source: Economic Times