The Supreme Court has convicted brothers Malivander and Shivinder Singh, former promoters of the country's leading pharmaceutical company Ranbaxy, in the Japanese company Daiichi Sankyo case. Daiichi Sankyo, a drug maker, filed a petition in the Supreme Court against the Singh brothers for not paying Rs 3500 crore.
The country's highest court said that the Singh brothers violated its order by selling their shares in Fortis Healthcare. The Singapore tribunal had in 2016 asked the Singh brothers to give Rs 3,500 crore to Daiichi. Daiichi had appealed to the Supreme Court to get the Singh brothers to follow the tribunal's order.
A bench of Chief Justice Ranjan Gogoi and Justice Deepak Gupta said in its judgment that the former promoter of Ranbaxy was guilty of contempt of court. The bench said that the Singh brothers have violated an earlier order asking them not to sell their controlling shares of Fortis Group to the Malaysian company IHH Healthcare.
The court said that they would hear the Singh brothers later on the question of punishment. The Japanese firm had filed a contempt petition against the Singh brothers. It alleged that the award in its favor was in jeopardy as the Singh brothers sold their shares in the Fortis group to the Malaysian company.
In 2008, Malvinder Singh and Shivinder Singh sold Ranbaxy to Daichi Sankyo. Sun Pharmaceuticals later bought Ranbaxy from Daiichi for $ 3.2 billion. The Japanese drug maker alleged that the Singh brothers had hidden many facts by selling him Ranbaxy.
