Singh brothers are due to appear before the Supreme Court of India this Thursday in a case filed by Japan's Daiichi Sankyo to explain sale of Fortis Healthcare to IHH and possible contempt proceedings. Daiichi is enforcing an arbitration order in Singapore that requires the brothers to compensate Daiichi with $500 million (approximately Rs 3,500 crore) for alleged non-disclosure of crucial information during the sale of Ranbaxy Laboratories to Daiichi.
Days before the hearing, fund transfer details accessed by BusinessToday.In provide the most exact picture of the flow of money from Singh brothers to entities owned and controlled by Gurinder Singh Dhillon - the head of the Radha Soami Satsang Beas - his family and RSSB associates. Enforcing a repayment of the outstanding money could easily get Singh brothers off the hook by paying off the liabilities towards Daiichi at least.
RoC filings and terms sheets indicate that between 2011 and 2014, Rs 1107.5 crore worth of proceeds from the Rs 9,576 crore sale of Ranbaxy to Daiichi Sankyo made their way through RHC group firms RHC Holding Private Limited, Oscar Investment Limited, RHC Finance Private Limited and Fortis Healthcare Holdings Private Limited into two group entities ANR Securities Private Limited and Ranchem Private Limited.
With such large amounts, where interest components are now often as big or bigger than the principle amount, there are likely to be haircuts to settle the disputes. But a settlement is nowhere in sight yet as talks are deadlocked with all sides bracing to go the legal way.
In the end, Singh brothers may not have enough money to pay off all their debt of over Rs 7,000 crore. Yet, enough is due to them to be able to pay off Daiichi at least. The question is: can Supreme Court preside over recovery of dues from the entities that owe the money?