Singh brothers, Malvinder and Shivinder, step down from Fortis Healthcare Board

Fortis Healthcare promoters Malvinder Mohan Singh and Shivinder Mohan Singh have stepped down from the company’s Board of Directors. Also, Malvinder Singh resigned as executive chairman of Fortis Healthcare, Shivinder Singh as non-executive vice chairman.

“This is to inform you that Malvinder Mohan Singh, Executive Chairman and Shivinder Mohan Singh, Non-Executive Vice Chairman have tendered their resignation from the directorships of the Company.

The board of Fortis Healthcare is slated discuss the matter on February 13.

Last month, the Delhi High Court had allowed Japanese pharma firm Daiichi Sankyo to collect Rs 3,500 crore ($500 million) award money from the Singh brothers.

“In the light of the recent High Court judgment, upholding the plea of Daiichi Sankyo to enforce the arbitration award, we believe this is in the interest of propriety and good governance. It is intended to free the organization from any encumbrance whatsoever that may be linked to the promoters,” Singh brothers said in a letter to the Fortis’ Board of Directors.

A Singaporean tribunal had adjudged in favour of Daiichi that the Singh brothers had concealed information that Ranbaxy was under probe by US FDA, while selling its shares.

"The members of the board are also requested to look into all inter-group transactions and distance the promoter group from Fortis Healthcare Ltd in a manner that enables continuity of the operations of the organisation and deliver on its mission of enriching and saving lives," the Singh brothers wrote in the letter.

The high court order paved the way for enforcement of the 2016 arbitral award passed by the Singapore tribunal against the Singh brothers who had sold their shares in Ranbaxy to Daiichi in 2008 for Rs 9,576.1 crore. Sun Pharmaceuticals Ltd later acquired the company from Daiichi.