SFIO set to probe Fortis, Religare for Irregularities

FPJ BureauUpdated: Thursday, May 30, 2019, 12:04 AM IST
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New Delhi : The Serious Fraud Investigation Office (SFIO) will probe alleged financial irregularities at Fortis Healthcare and Religare Enterprises, according to senior officials.

The corporate affairs ministry has been looking into the affairs of Fortis and Religare after recent reports that financial irregularities have been found at the two companies.

Two senior officials said that a SFIO probe has been ordered against the two companies.

The latest development comes against the backdrop of reports that the Fortis Healthcare promoters — Malvinder Singh and Shivinder Singh — took at least $78 million out of the company without any board approval about a year ago.

A Religare spokesperson said the company has not received any communication, written or otherwise, from any government authority with regard to such a purported investigation.

“As such we have no knowledge of any investigation against the company,” the spokesperson said. In a filing to the National Stock Exchange, Fortis Healthcare said it “has not received any communication, written or otherwise, from any government authority with regard to such a purported investigation”.

The Singh brothers are promoters of both the companies. Earlier this month, they stepped down from the boards of the two firms.

The SFIO, under the ministry, mainly probes white collar crimes. Fortis Healthcare has also come under the lens of markets regulator Sebi, which launched an investigation into the alleged regulatory lapses. On Saturday, Fortis informed the exchanges that Sebi, which has instituted an investigation, has sought information and documents by February 26.

Sebi Chairman Ajay Tyagi  said that the regulator was examining the Fortis issue.

Promoters’ stake in Fortis falls to 8.85% 

New Delhi : Promoter and promoter group holdings in Fortis Healthcare have come down to 8.85 per cent from 34.43 per cent following invocation of pledged shares, the healthcare chain said.

Meanwhile, The Delhi High Court on Monday directed Fortis Healthacare  promoters Malvinder Singh and Shivinder Singh to maintain status quo on their assets till Feb 26, when the case comes up for next hearing.

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