The Fortis–Religare Singh Brothers Fraud
Two brothers sold their pharmaceutical company for billions, then allegedly siphoned crores out of the financial and healthcare companies they controlled next — while separately owing a Japanese drugmaker a multi-billion-dollar arbitration award from the original sale.
The Promise
“Funds of Religare Finvest Ltd. will be used and lent in accordance with the company's disclosed lending practices, not diverted to entities controlled by its own promoters.”
— Malvinder Mohan Singh and Shivinder Mohan Singh, promoters of Religare Enterprises and Fortis Healthcare, Former promoters of Ranbaxy Laboratories, later of Religare and Fortis Healthcare · 1 March 2019
After selling their stake in Ranbaxy Laboratories to Daiichi Sankyo for roughly $4.6 billion in 2008, the Singh brothers built a financial services and healthcare group; they were later accused of siphoning funds from Religare Finvest, a Religare subsidiary.
The Standard
Company funds lent and used strictly in accordance with disclosed lending policy, with no diversion to promoter-controlled entities.
RBI norms on related-party lending for non-bank financial companies, and standard corporate fiduciary duty.
In force from 1 March 2019
The Reality
Delhi Police's Economic Offences Wing arrested both brothers, alleging they had caused a loss of ₹2,397 crore to Religare Finvest. Separately, and on an unrelated legal track, the Supreme Court held both brothers guilty of contempt of court in 2019 for violating its order not to divest their shares in Fortis Healthcare, in connection with their inability to pay a roughly $550 million (about ₹3,500 crore, per the Singapore-seated tribunal's award) arbitration award won by Daiichi Sankyo over the original Ranbaxy sale. As of the most recent reporting reviewed, Shivinder Singh had filed for personal insolvency.
As of 21 April 2025
The Gap
Bars share a single zero-based scale. No axis truncation is used to exaggerate or minimize the gap between the two figures.
Timeline
- AnnouncementRanbaxy sold to Daiichi Sankyo
The brothers sell their controlling stake for roughly $4.6 billion.
- StatusSiphoning allegations surface
A New York-based investor accuses the brothers of siphoning money from Religare.
- StatusContempt of court finding
The Supreme Court holds the brothers guilty of contempt for violating an order on Fortis shares.
- StatusEOW arrests both brothers
Delhi Police's Economic Offences Wing arrests them over the alleged ₹2,397 crore Religare Finvest fraud.
- StatusShivinder Singh files for personal insolvency
He seeks protection at the National Company Law Tribunal.
Legal Status
This is a stub entry. The brothers have been held guilty of contempt of court in the separate Fortis-shares matter — a finding this investigation has verified — but this entry has not yet confirmed a verdict in the core Religare Finvest fraud case.
Held guilty of contempt of court by the Supreme Court, 2019, in a matter separate from the core fraud allegations. Arrested by Delhi Police's EOW over the alleged ₹2,397 crore Religare Finvest fraud; this investigation has not confirmed a verdict in that case.
Held guilty of contempt of court alongside his brother, 2019. Later filed for personal insolvency, April 2025. This investigation has not confirmed a verdict in the core fraud case.
Verdict
Preliminary verdict, pending fuller research: the contempt-of-court finding against both brothers is confirmed and final. The core criminal fraud allegation regarding Religare Finvest is documented by the arrest and EOW case, but this investigation has not yet established whether it has reached a trial verdict.
This entry deliberately separates two distinct legal tracks — the confirmed contempt finding and the unresolved fraud case — to avoid conflating them, since only one has actually concluded.
What remains incomplete
- This is a stub entry. The current status and any verdict in the core Religare Finvest fraud case has not been confirmed.
- The relationship between this case and separate SEBI or other regulatory proceedings against the brothers has not been detailed here.
- The outcome of Shivinder Singh's personal insolvency filing had not been resolved as of the most recent reporting reviewed.
Sources
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