Religare Finvest: The Singh Brothers' NBFC Loan Diversion

“Religare Finvest Limited, as an RBI-registered NBFC and lending arm of Religare Enterprises, is required to disburse loans on arm's-length commercial terms and to maintain the fiduciary standards expected of a regulated lender handling public and institutional depositor/investor money, free of related-party diversion to its own promoters.”

— Religare Finvest Limited / Religare Enterprises Limited, under promoters Malvinder Mohan Singh and Shivinder Mohan Singh, Promoters and then-board members, Religare Enterprises Ltd and its NBFC subsidiary Religare Finvest Ltd · 1 January 2016

This reflects the general fiduciary and regulatory standard applicable to a promoter-controlled NBFC lender rather than a specific public quotation by the Singh brothers.

That Religare Finvest's lending decisions would be made independently of promoter interests, with loans going to creditworthy, unrelated borrowers rather than shell entities controlled by, or benefiting, its own promoters — as required for any RBI-regulated NBFC.

RBI's NBFC regulations on related-party lending and corporate governance; SEBI's Listing Obligations and Disclosure Requirements on related-party transactions; the Companies Act's fiduciary-duty provisions.

In force from 29 January 2018

A New York-based investor first publicly accused the Singh brothers of siphoning money from Religare group companies in January 2018. SEBI subsequently found preliminary evidence that roughly ₹2,300 crore had been diverted from RFL's books to entities linked to promoters Malvinder and Shivinder Singh and directed Religare Finvest and Religare Enterprises to recall the loans. In March 2019, Delhi Police's Economic Offences Wing registered a case on RFL's own complaint alleging the brothers, while controlling Religare Enterprises, caused RFL to disburse loans to entities they controlled, causing RFL a loss of about ₹2,397 crore; EOW's 2020 chargesheet alleged the brothers used roughly 19 shell companies to route the money and 'square off' personal liabilities. The Enforcement Directorate separately filed a money-laundering chargesheet under PMLA against Malvinder Singh, Shivinder Singh and former Religare Enterprises CMD Sunil Godhwani in relation to the RFL fund diversion. In July 2022, SEBI imposed a combined ₹60 crore penalty on ten entities in the matter, including ₹10 crore each on Malvinder and Shivinder Singh, and barred them from the securities market for three years. Multiple rounds of litigation between Religare Finvest and the Singh brothers, including challenges before the Delhi High Court and Supreme Court over the police investigation's validity, continued through 2024, with a Supreme Court ruling in the case reported in early 2024. This entry has not confirmed a final criminal trial verdict as of publication.

As of 9 February 2024

SEBI separately calculated roughly ₹2,315 crore in diverted RFL funds in its own 2019 order directing loan recall, a figure close to but not identical to the EOW's ₹2,397 crore loss estimate. Neither figure has been finally adjudicated in a criminal trial.

1. 29 Jan 2018Announcement
   Fund-diversion allegations go public

   A New York-based investor publicly accuses Religare's Singh brother promoters of siphoning money out of group companies, drawing regulatory attention to Religare Finvest's loan book.

2. 14 Mar 2019Milestone
   SEBI orders loan recall

   SEBI directs Religare Finvest and Religare Enterprises to recall over ₹2,300 crore in loans from Malvinder Singh, Shivinder Singh and 21 other entities, citing preliminary evidence of fund diversion.

3. 29 Mar 2019Milestone
   Delhi Police EOW registers case

   Delhi Police's Economic Offences Wing registers a case on Religare Finvest's complaint alleging the Singh brothers caused RFL a loss of about ₹2,397 crore through loans to entities they controlled.

4. 11 Jan 2020Milestone
   ED files PMLA chargesheet

   The Enforcement Directorate files a money-laundering chargesheet against Malvinder Singh, Shivinder Singh and former Religare Enterprises CMD Sunil Godhwani over the alleged RFL fund misappropriation.

5. 28 Jul 2022Milestone
   SEBI penalises Singh brothers and others

   SEBI imposes a combined ₹60 crore penalty on ten entities, including ₹10 crore each on Malvinder and Shivinder Singh, and bars them from the securities market for three years over the RFL fund-diversion findings.

6. 9 Feb 2024Status
   Litigation continues

   Proceedings between Religare Finvest and the Singh brothers over the criminal case continue before the Delhi High Court and Supreme Court; this entry has not confirmed a final trial verdict as of the most recent reporting reviewed.

This is a separate case from the Fortis Healthcare pharma-siphoning matter involving the same Singh brothers (covered elsewhere on this site). The Religare Finvest case remains under trial: Delhi Police's EOW and the Enforcement Directorate have both filed chargesheets alleging fund diversion and money laundering, and SEBI has imposed monetary penalties and a market ban, but no criminal conviction has been confirmed as of this entry's most recent sourcing. Malvinder and Shivinder Singh deny the allegations.

• The final outcome of the criminal trial (EOW case) and the PMLA prosecution against the Singh brothers and Sunil Godhwani has not been confirmed as of this entry's most recent sourcing (February 2024); more recent developments through 2025-2026 have not been verified.
• This entry has not independently reviewed the primary SEBI order, EOW chargesheet, or ED chargesheet documents — all facts are drawn from secondary business-press reporting.
• The extent of any asset attachment or recovery achieved by the Enforcement Directorate under PMLA in this specific case (as distinct from the related Fortis matter) has not been quantified here.