Supreme Court restrains former Ranbaxy promoters Singh brothers from selling Fortis shares

Supreme Court restrains former Ranbaxy promoters Singh brothers from selling Fortis shares

Supreme Court restrains former Ranbaxy promoters Singh brothers from selling Fortis shares

The Supreme Court on Thursday refused to give the Singh brothers (Malvinder and Shivinder, the original promoters of Ranbaxy and Fortis) permission to sell Fortis shares.

A division bench of Justice Ranjan Gogoi and Justice Navin Sinha also directed YES Bank Ltd and Axis Bank Ltd, which hold the company's mortgaged shares, to not sell those securities until further orders.

The apex court told the brothers that they can not sell any assets, either encumbered or non-encumberd, and also refused permission to banks seeking to sell pledged shares. On August 23, the Singhs had sought permission from the apex court to sell pledged shares after it's August 11 order telling companies controlled by the two brothers to not sell shares in Fortis. The sale was to help the Singhs reduce debt, according to them.

In May previous year, the Singapore arbitration court ordered the Singh brothers to pay Rs 2,563 crore to Daiichi for allegedly hiding information about Ranbaxy. Encumbered assets are those pledged or offered as collateral to a lender.

The Singhs were blocked from changing the status of Fortis Holding's shares in Fortis Healthcare after Japanese drug maker Daiichi Sankyo moved the Supreme Court to block them from selling stake in the hospital group.

The court has fixed the next date of hearing in the matter on October 31.

On Tuesday last week, Rekha Jhunjhunwala, wife of investor Rakesh Jhunjhunwala, bought 4.5 million shares, or a 0.9 per cent stake, in Fortis Healthcare through a bulk deal at Rs134.65 per share, the NSE data showed. The total value of their dues after interest addition and legal fees came to Rs3,500 crore.

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