SAT directs Fortis promoter to deposit 50% of penalty
SAT has directed businessman Shivinder Mohan Singh to deposit 50 per cent of the penalty imposed by Sebi within six weeks in connection with a case related to Fortis Healthcare.
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New Delhi: Securities Appellate Tribunal (SAT) has directed businessman Shivinder Mohan Singh to deposit 50 per cent of the penalty imposed by Sebi within six weeks in connection with a case related to Fortis Healthcare.
If the amount is deposited, then the markets regulator will not make further recovery, the SAT said in its order passed on July 8. August 1 is the next date of hearing. The order came after a plea filed by him against the regulator's order passed in April, whereby it had slapped a fine of Rs5 crore each on Shivinder Mohan Singh and his brother Malvinder Mohan Singh, who were promoters of Fortis Healthcare.
Apart from Singh brothers, the regulator had penalised seven entities. In addition, Sebi had barred Singh brothers from the securities market for a period of three years. They have also been restrained from being associated as directors or key managerial personnel in a listed company or Sebi-registered intermediary of any market infrastructure institution.
The case relates to the Singh brothers, along with other entities, allegedly diverting funds from Fortis Healthcare for the ultimate benefit of RHC Holding Pvt Ltd — an entity indirectly owned and directly controlled by the erstwhile promoters.
These entities acted in a fraudulent and deceptive manner which led to misuse and/or diversion of funds to the tune of Rs 397.12 crore for the ultimate benefit of RHC Holding, as per the order. Singh brothers are non longer associated with Fortis Hospitals and Fortis Healthcare.
