Former promoters of Religare Enterprises Malvinder and Shivinder Mohan Singh embezzled public money from group's lending arm Religare Finvest (RFL) to settle their personal liabilities, according Delhi Police's Economic Offences Wing's (EOW) chargesheet against the brothers.
The Singh brothers had diverted the (public) money to 19 shell companies and used it to "square off their personal liabilities," the EOW said in its complaint. The chargesheet in the funds-misappropriation case was filed by RFL.
It further alleged that the Singh brothers joined Religare Finvest's board in 2016 with the intent of diverting money to these shell companies. Even the method of scrutinising documents for approving loans was all a "paper formality", according to the chargesheet.
Meanwhile, the Singh brothers denied any misconduct on their part. RFL is a group firm of REL, which was earlier promoted by Malvinder and his brother Shivinder Singh.
The ED alleged that both the brothers, along with others, transferred an amount of about Rs 1,000 crore to various persons from entities linked to the corporate loan book and finally, the money was siphoned off.
The agency started its investigation in the matter on the basis of a case lodged by the Delhi Police.
Malvinder (46), Shivinder (44), Godhwani (58), Arora (48) and Saxena were arrested by EOW for allegedly diverting the money and investing in other companies. The EOW registered an FIR in March last year after it received a complaint from RFL's Manpreet Suri against Shivinder, Godhwani and others, alleging that loans were taken by them while managing the firm but the money was invested in other companies.