Delhi Police Economic Offenses Wing Tells Delhi Court That Rs 1,260 Crore Was Diverted To Malvinder Singh’s Company
[ By Bobby Anthony ]The Economic Offenses Wing (EOW) of the Delhi police which is probing the Religare Fraud Case told a Delhi court that Rs 1,260 crore has been diverted to Malvinder Singh's firm RHC Holdings Pvt Ltd in order to square off liabilities.The EOW stated in its petition to the court that this was revealed by a forensic audit conducted by the Securities & Exchange Board of...
The Economic Offenses Wing (EOW) of the Delhi police which is probing the Religare Fraud Case told a Delhi court that Rs 1,260 crore has been diverted to Malvinder Singh's firm RHC Holdings Pvt Ltd in order to square off liabilities.
The EOW stated in its petition to the court that this was revealed by a forensic audit conducted by the Securities & Exchange Board of India (SEBI) and was further paid to square off the liabilities of mutual funds.
The EOW has also sought remand of the five accused, including former promoters of Ranbaxy as well as Shivinder Singh and Malvinder Singh, who were arrested recently.
The EOW’s remand application has stated that a Reserve Bank of India (RBI) report submitted by the complainant company mentioned that a preliminary scrutiny of data provided by banks revealed an links between borrowers. The funds were routed from one borrower to another in various instances, the document stated.
It has emerged from the discussion with the company's officials that these loans were given on recommendation of promoters as the owners of the borrowing entities had good relations with the promoters, the EOW application has stated.
Credit approvals in few of these loan accounts explicitly mentioned that these loans were granted on the basis of recommendation of the promoters. Majority of the loans in this portfolio were unsecured, according to the EOW application.
Earlier the EOW had arrested Shivinder Singh, Sunil Godhwani, who is a former Managing Director of Religare, Kavi Arora and Anil Saxena, while Malvinder was arrested in a separate raid later.
The arrested persons are accused of causing a loss of Rs 2,397 crore to Religare Enterprises. The First Information Report (FIR) stated that the accused had total control of Religare and put the firm in a financially weak condition by way of disposing the loans to the companies. The FIR also stated that those companies were controlled by them, but they had no financial standing.