Fortis Healthcare says it was ‘complete stranger’ to Daiichi-Singh Brothers dispute after SC allows…

The latest market report highlights that Fortis Healthcare has defended its position in the ongoing legal dispute involving Daiichi Sankyo and the Singh Brothers, saying it was a “complete stranger” to the underlying dispute and had no role in the alleged dissipation of the erstwhile promoters’ shareholding.

In a disclosure to the bourses, Fortis stated the Supreme Court, in its September 25 order, disposed of the firm’s Special Leave Petition challenging the Delhi High Court’s August 31 order directing a forensic audit of the firm in the matter of Daiichi Sankyo Firm Limited vs. Malvinder Mohan Singh & Ors.

While allowing the forensic audit to proceed, the Supreme Court clarified that various observations in the Delhi High Court judgment challenged by Fortis were “tentative and only for the purpose of making out a case for forensic audit”.

The apex court further clarified that the forensic audit would be conducted independently and would not be influenced by those observations.

Fortis stated the Delhi High Court had not imposed any liability, penalty or fine on the firm. It additionally stated it was never a party to the arbitration proceedings between Daiichi Sankyo and the Singh Brothers and was neither a judgment debtor nor a garnishee in respect of Daiichi Sankyo’s decree.

The firm stated that, as a publicly listed entity, it had no power or ability to control the transfer of shares by its erstwhile promoters, who were the owners of those shares. Fortis additionally stated it had received no money or proceeds on account of the alleged dissipation of the erstwhile promoters’ shareholding.

Fortis further stated that after the Singh Brothers’ shareholding declined below one per cent and they resigned from the Board by March 2018, institutional shareholders appointed independent directors. The independent Board subsequently undertook a competitive bidding process in June 2018 to identify and induct a new investor.

As stated by the firm, the investment by its present promoter shareholder, Northern TK Venture Pte. Ltd., part of the IHH Healthcare Berhad group, was made through a fresh offering of equity shares in November 2018 after obtaining statutory and regulatory approvals, including those from the CCI, SEBI, bourses and shareholders.

Fortis stated the transaction took place several months after the Singh Brothers had ceased to have any relationship with the firm and did not involve transfer of shares from them.

“The Firm is confident that an independent forensic audit will attest to the above incontrovertible facts,” Fortis stated.

The firm additionally reiterated its commitment to corporate governance, transparency and regulatory compliance and stated it remained focused on its operations and stakeholders following its turnaround since 2018 under Northern TK Venture Pte. Ltd., part of the IHH Healthcare Berhad group.

The disclosure was made under Regulation 30 of the SEBI Stock-exchange debut Obligations and Disclosure Requirements Regulations. The firm stated that the relevant event occurred on September 26.