Former Religare promoter Malvinder Singh was arrested on Thursday in Ludhiana on the charges of siphoning of funds. He will be brought to New Delhi on a transit remand by the Economic Offences Wing of the Delhi Police.
Earlier today, the Delhi Police had arrested Malvinder's brother and former Religare co-promoter Shivinder Singh and Religare ex-CMD Sunil Godhwani by the Delhi Police. The action came in the backdrop of a fund diversion complaint filed by Manpreet Singh Suri of Religare Finvest against Malvinder, Shivinder and Sunil Godhwani, among others. The police also arrested former Religare Finvest MD Kavi Arora and former Religare Group CFO Anil Saxena.
The Delhi Police said in a statement: "The alleged persons systematically siphoned off and diverted money of general public in a clandestine manner for their own benefit."
All accused will be produced before Delhi's Saket Court at 5:00pm, following which they will be taken into custody for questioning. The Enforcement Directorate is also likely to file a case in the matter.
"The alleged persons having absolute control on Religare Enterprises and its subsidiaries put Religare Finvest in poor financial condition by way of disbursing the loans to the companies having no financial standing and control by the alleged persons. These companies wilfully defaulted in repayments and caused wrongful loss to RFL to the tune of Rs 2,397 crore. This was also pointed out and flagged during their independent audit by RBI and SEBI," the statement further added.
Last month, Religare Finvest (RFL), the lending entity of Religare Enterprises (REL), had filed an FIR with the EOW of Delhi Police against brothers Shivinder Singh and Malvinder Singh and Lakshmi Vilas Bank for "cheating, criminal breach of trust by banker, criminal misappropriation and criminal conspiracy".
REL was controlled by Malvinder and Shivinder until February 2018. Post their exit on February 14, 2018, the REL and RFL boards were re-constituted. The new REL board had later discovered that one of the major reasons for RFL's terrible financial condition "was the misappropriation by LVB of monies due to RFL on account of four fixed deposits worth Rs 791 crore (including interest incurred on principal amount of Rs 750 crore)".