Wednesday, Sep 26, 2018 | Last Update : 08:36 PM IST

Another ‘ugly chapter of family feud’: Shivinder moves NCLT against Malvinder

FINANCIAL CHRONICLE
Published : Sep 5, 2018, 9:02 am IST
Updated : Sep 5, 2018, 9:41 am IST

Shivinder said actions of his brother led to a systemic undermining of the interests of firms.

Promoters of Fortis Healthcare, Malvinder Singh and Shivinder Singh. (Photo credit: fortishealthcare.com)
 Promoters of Fortis Healthcare, Malvinder Singh and Shivinder Singh. (Photo credit: fortishealthcare.com)

New Delhi: The differences in the Ranbaxy family has got uglier. Former Ranbaxy promoter and founder of Fortis Healthcare promoter Shivinder Singh said on Tuesday that he had moved the National Company Law Tribunal (NCLT) against elder brother Malvinder and ex-Religare chief Sunil Godhwani, while dissociating from his brother as business partner.

“I have filed a case against Malvinder and Sunil Godhwani in the NCLT for oppression and mismanagement of RHC Holding, Religare and Fortis,” Shivinder said in a statement. He further said that this action was “long overdue” but got delayed in the fond hope that better sense would eventually prevail and another “ugly chapter of family feud” would not be written.

“The collective, ongoing, actions of Malvinder and Sunil Godhwani led to a systematic undermining of the interests of the companies and their shareholders mentioned above as also the committed and loyal employees of the group,” Shivinder said.

He alleged that collective and ongoing actions of his elder brother and Godhwani led to a systemic undermining of the interests of companies and their shareholders.

Stating that he had all along been a publicly supportive younger brother to Malvinder's Chairmanship of the group, he added that his focus and passion had always and solely been Fortis Healthcare since its inception. He said it was the only company he had worked for before taking public retirement to his Spiritual home, Beas to serve his Master in 2015.

He noted that he had left the company he founded in ‘trusted’ hands and in a period of less than two years, it moved towards disintegration and ruin of a national healthcare asset.

A PTI report said that comments from Malvinder Singh could not be obtained at the time of filing the story.

Shivinder further stated that while the group businesses were in “competent” hands, red flags had crept up in the group with disturbing regularity. Decisions taken in Religare’s NBFC arm; the transaction and subsequent management of the sale of the group’s then flagship — Ranbaxy to Daiichi, culminating in one of the most damaging Arbitration cases in the history of India Inc., the huge losses accumulated in running a private charter airline business (Ligare aviation), go to show that the malaise was systemic.

Full text of the letter written by Shivinder Singh:

This release comes in the aftermath of the legal and financial issues surrounding our joint companies. For two decades now, Malvinder and I Shivinder Mohan Singh have been synonymous with one another. Though the fact is, I have all along been the publicly supportive you­nger brother to Malvinder’s Chairmanship of the group, who took decisions on behalf of the family.

My focus and passion has always and solely been Fortis Healthcare since its inception. It is the only company I have worked for and all my intent and resources have been in nurturing this company. The concept of helping people in need and walking the talk of Fortis’ vision: “saving and enriching lives” has been the hallmark, as I served Fortis for almost two decades. I took public retirement to my Spiritual home, Beas to serve my Master, in 2015; leaving the thriving company I founded in ‘trusted’ hands and in a period of less than two years, it has moved towards disintegration and ruin of a national healthcare asset.

While the group businesses were in “Competent” hands, red flags have crept up in the group with disturbing regularity. Decisions taken in Religare’s NBFC arm; the transaction and subsequent management of the sale of the group’s then flagship – Ranbaxy to Daiichi, culminating in one of the most damaging Arbitration cases in the history of India Inc.,the unimaginable losses accumulated in running a private charter airline business (Ligare aviation), all these only go to show that the malaise is systemic.

Sensitivity to the family business’ reputation has refrained me from making any public or private statements despite my family’s and my personal trauma. My family reputation kept me a silent spectator, as I mutely watched the organisation I founded come to a point where it was publicly auctioned; where my family and myself have been stripped of our legacy, our finances and my personal credibility. Despite my best efforts, on my return from Beas for the past many months to salvage the situation, the continued systemic missteps resulted in a quicksand which now seems beyond resolution, if I continue to remain silent.

Recent planted media articles attempting to foist the responsibility of poor decisions taken, to an elder in the family who always stood by us as a father-figure ever since the premature demise of our father; has compelled me to break my silence. Attempts to pass the buck to an eminent figure, who has been a guiding light not only to our family but also to a large section of the public, deceives no one.

I have filed a case against Malvinder and Sunil Godhwani in the NCLT for oppression and mismanagement of RHC Holding, Religare and Fortis.

This action was long overdue but got delayed in the fond hope that better sense shall eventually prevail and another ugly chapter of family feud would not be written in our family business’ glorious history.

However, the unpleasant events finding narration in the petition go fundamentally against my grain.

The collective, ongoing, actions of Malvinder and Sunil Godhwani led to a systematic undermining of the interests of the companies and their shareholders mentioned above as also the committed and loyal employees of the group.

While it saddens me immensely and I wish Malvinder well; I can no longer be party to activities in which transparency and ethics are continuously and consistently negated. It has come to a point where this means that I am now disassociating from my brother as a business partner and will be pursuing an independent path going forward.

Tags: fortis healthcare, shivinder singh, malvinder singh, nclt
Location: India, Delhi, New Delhi