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Securities and Exchange Board of India (Sebi) has directed Fortis Healthcare Ltd and Fortis Hospitals to recover Rs. 403 crores, along with interest, from the previous promoters Shivinder Mohan Singh and Malvinder Mohan Singh and seven other entities within the time period of three months. The SEBI passed an order in October this year directed Fortis Healthcare to take necessary steps to recover all the amount.
As per the company’s submission to SEBI, “The outstanding amount of Rs 403 crores had been advanced by Fortis Hospitals itself to Best, Fern and Modland. As such, the outstanding amount is required to be returned to Fortis Hospitals itself.”
The submission also read, “Since the loan of the outstanding amount had been made solely by Fortis Hospitals, on its own account, upon recovery of the outstanding amount by Fortis Hospitals, there would not be any consequent requirement upon Fortis Hospitals to pay the same to Fortis Healthcare. Consequently, Fortis Hospitals and not Fortis Healthcare would be the relevant entity which would be required to take steps for the recovery of the outstanding amount.”
SEBI after hearing the submission stated, “Fortis Healthcare and Fortis Hospitals shall take all necessary steps to recover the…amount of ?403 crore (approx.) along with due interest from notice (Singh brothers and seven other entities)…within three months from the date of the interim order.”
In SEBI’s order, apart from the Singh Brothers, RHC Holdings, Religare Finvest, Shivi Holdings, Malav Holdings, Best Healthcare, Fern Healthcare and Modland Wears will also have to jointly and severally repay the amount.
