The fight over how the Singh brothers, Malvinder and Shivinder, squandered Rs 22,500 crore in less than a decade has become fiercer with Shivinder suing his elder brother Malvinder and former Religare CEO Sunil Godhwani in the National Company Law Tribunal for oppression and mismanagement of RHC Holding.
In what's obviously a start of another family feud in corporate India, former Ranbaxy promoter Shivinder Singh today in a press statement said that he has parted ways with his brother Malvinder to follow his "own path". He held Malvinder and Godhwani responsible for systematic undermining of the interests of their companies and their shareholders.
Shivinder revealed that this action was "long overdue but got delayed in the hope that better sense shall eventually prevail and another ugly chapter of family feud would not be written in our family business' glorious history."
Shivinder said that he can't be a party to activities in which transparency and ethics are continuously and consistently negated. "It has come to a point where this means that I am now disassociating from my brother as a business partner and will be pursuing an independent path going forward," said Shivinder.
Last month, both the brothers had blamed Godhwani for orchestrating a series of transactions over a decade and leaving them with a debt load. "Mr Godhwani used his position to conceive and orchestrate a series of transactions over the better part of a decade that led to our Group's debt load by 2016. Regarding Mr. Godhwani, it is clear that he used our trust in him to exercise undue influence and has taken advantage of the faith bestowed by both families," Shivinder and Malvinder told BusinessToday.In.
The Singh brothers, Malvinder and Shivinder, have been at the centre of one of the biggest corporate turmoils after they squandered Rs 22,500 crore in less than a decade.
The two brothers were loaded with Rs 9,576 crore in cash in 2008 after selling India's largest pharmaceutical firm Ranbaxy Laboratories to Japan's Daiichi Sankyo. Just 8 years later, in 2016, they were in debt of Rs 13,000 crore.
Here's the full text of the statement issued by Shivinder Singh.
This release comes in the aftermath of the legal and financial issues surrounding our joint companies. For two decades now, Malvinder and I, Shivinder Mohan Singh, have been synonymous with one another. Though the fact is, I have all along been the publicly supportive younger brother to Malvinder's Chairmanship of the group, who took decisions on behalf of the family.
My focus and passion has always and solely been Fortis Healthcare since its inception. It is the only company I have worked for and all my intent and resources have been in nurturing this company. The concept of helping people in need and walking the talk of Fortis' vision: "saving and enriching lives" has been the hallmark, as I served Fortis for almost two decades. I took public retirement to my Spiritual home, Beas to serve my Master, in 2015; leaving the thriving company I founded in 'trusted' hands and in a period of less than two years, it has moved towards disintegration and ruin of a national healthcare asset.
While the group businesses were in "Competent" hands, red flags have crept up in the group with disturbing regularity. Decisions taken in Religare's NBFC arm; the transaction and subsequent management of the sale of the group's then flagship - Ranbaxy to Daiichi, culminating in one of the most damaging Arbitration cases in the history of India Inc., the unimaginable losses accumulated in running a private charter airline business (Ligare aviation), all these only go to show that the malaise is systemic.
Sensitivity to the family business' reputation has refrained me from making any public or private statements despite my family's and my personal trauma. My family reputation kept me a silent spectator, as I mutely watched the organisation I founded come to a point where it was publicly auctioned; where my family and myself have been stripped of our legacy, our finances and my personal credibility. Despite my best efforts, on my return from Beas for the past many months to salvage the situation, the continued systemic missteps resulted in a quicksand which now seems beyond resolution, if I continue to remain silent.
Recent planted media articles attempting to foist the responsibility of poor decisions taken, to an elder in the family who always stood by us as a father-figure ever since the premature demise of our father; has compelled me to break my silence. Attempts to pass the buck to an eminent figure, who has been a guiding light not only to our family but also to a large section of the public, deceives no one.
I have filed a case against Malvinder and Sunil Godhwani in the NCLT for oppression and mismanagement of RHC Holding, Religare and Fortis. This action was long overdue but got delayed in the fond hope that better sense shall eventually prevail and another ugly chapter of family feud would not be written in our family business' glorious history. However, the unpleasant events finding narration in the petition go fundamentally against my grain. The collective, ongoing, actions of Malvinder and Sunil Godhwani led to a systematic undermining of the interests of the companies and their shareholders mentioned above as also the committed and loyal employees of the group.
While it saddens me immensely and I wish Malvinder well; I can no longer be party to activities in which transparency and ethics are continuously and consistently negated. It has come to a point where this means that I am now disassociating from my brother as a business partner and will be pursuing an independent path going forward.
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