NEW DELHI: The Supreme Court on Thursday awarded a six-month jail term to former promoters of Fortis Healthcare, Malvinder Singh and Shivinder Singh. The case relates to the sale of shares of Fortis to Malaysia-based IHH Healthcare.
A bench headed by Chief Justice Uday Umesh Lalit awarded the six months to the former promoters, who were earlier held guilty of contempt. The top court also ordered a forensic audit of the share sale in Fortis Healthcare. “Everything goes back to the executing court,” the CJI said.
The former promoters of Fortis Healthcare were facing the court battle after a Japanese firm, Daiichi Sankyo, had challenged the Fortis-IHH share deal to recover the Rs 3,600-crore arbitration award that it had won before a Singapore tribunal against the Singh brothers. The IHH-Fortis deal is stuck due to the legal fight between Daiichi and the former promoters of Fortis Healthcare.
In 2018, when some Indian lenders sold the pledged shares of Fortis Healthcare to the Malaysia-based firm, Daichi went to court alleging that the former promoters of Fortis had assured them that their shares in the Indian hospital chain will cover the arbitral award amount.
Fortis Healthcare said in a statement, “We understand that the proceedings before the Supreme Court have concluded with certain directions and the suo motu contempt has been disposed of. We remain committed to our core purpose of patient care and will continue to focus on our strategic and operational objectives to further strengthen and expand our healthcare network. We will keep all our stakeholders informed, as required. ”