Fortis Healthcare open offer case: SC defers hearing by another two weeks

The Supreme Court on Friday deferred the Fortis open offer case by another two weeks, it was reported

For those not aware of the term, an open offer is a secondary market offering where a shareholder is allowed to purchase a stock at a price that is lower than the current market price.

Malaysia's IHH Healthcare had offered to help Fortis’ open offer, but later said it will not be able to proceed with the open offer for Fortis Healthcare for the time being, following the Supreme Court order to put on hold sale of controlling stake in the Indian hospital chain.

Fortis Healthcare has been in trouble for a few years now with the Securities and Exchange Board of India (SEBI) in 2018 asking the company to take necessary steps to recover Rs 403 crore, along with interest from the company’s proprietors Shivinder Mohan Singh, Malvinder Mohan Singh and seven other entities within three months. The SEBI, through an order passed in October 2018, had asked Fortis Healthcare to recover the amount.

Malvinder (46), Shivinder (44), Godhwani (58) and Arora (48) and Saxena, were arrested by the EOW for allegedly diverting the money and investing in other companies.

At the time, the Economic Offences Wing (EOW) of Delhi Police had on Tuesday told the court that Singh brothers have disclosed that an amount of about Rs 1,000 crore has been transferred to various persons from the entities linked to corporate loan book which was then allegedly siphoned off.

In November 2019, the Enforcement Directorate (ED) arrested Malvinder Singh and former CMD of Religare Enterprises Ltd (REL) Sunil Godhwani in a money-laundering case related to alleged misappropriation of funds of Religare Finvest Ltd (RFL).

The Enforcement Directorate (ED) took both the accused in its custody inside the Tihar central jail here, where they are currently lodged in a case filed by the Delhi Police in relation to the alleged scam.

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