Sebi fines 52 entities in Religare Finvest case
Imposes a fine of Rs21 cr for huge diversion and misutilisation of funds of Religare Finvest
image for illustrative purpose
New Delhi: Capital markets regulator Sebi has imposed a fine totalling Rs21 crore on 52 entities, including Fortis Healthcare Holdings, in a case pertaining to huge diversion and misutilisation of funds of Religare Finvest, an arm of Religare Enterprises.
They have been asked to pay the fine within 45 days, according to an order passed by the Securities and Exchange Board of India (Sebi) on Monday.
The case involves a complex web of transactions whereby the funds of listed company Religare Enterprises Limited (REL) were diverted through its subsidiary Religare Finvest Ltd (RFL) for the ultimate benefit of the erstwhile promoters -- RHC Holding, Malvinder Mohan Singh and Shivinder Mohan Singh. Funds were also misutilised for repayment of earlier loans taken from RFL.
"The whole scheme of fraud led to diversion of funds of Rs2473.66 crore out of a material subsidiary of REL and also mis-utilisation of funds of Rs487.92 crores of RFL," Sebi said in its 390-page order.
