Former Ranbaxy promoters Malvinder and Shivinder Mohan Singh fined Rs 2,600 cr for hiding facts from Daiichi
NEW DELHI: Malvinder Mohan Singh and Shivinder Mohan Singh, the erstwhile promoters of RanbaxyBSE 5.63 % Laboratories suffered a major setback earlier this week when the Singapore Court of Arbitration awarded about Rs 2,600 crore ($400) million fine for concealing and misrepresenting facts from Japanese pharmaceutical company Daiichi Sankyo when they sold the promoters’ stake for $2.4 billion in 2008.
Daiichi had filed the arbitration case in 2013 in Singapore. It had accused the Indian promoters of concealment and misrepresented facts. The Japanese company had sought compensation for losses that it was forced to pay the US Department of Justice.
The arbitration order is a major setback on Malvinder Mohan Singh. His Younger brother Shivinder Mohan Singh has already stepped down from the executive role of group companies and had joined the Radha Soami Satsang Beas, a philosophical and spiritual organization that is well-known in Punjab and headquartered near the Amritsar.
Malvinder Mohan Singh could not be reached.
In May 2013, Ranbaxy, under the management control of Daiichi, was forced to reach a $500-million settlement with the US Department of Justice in May accusations that the company faked test results to get approval from the Food and Drug Administration for its medicines.
The US subsidiary of Ranbaxy pleaded guilty to seven felonies relating to the manufacture and distribution of certain adulterated drugs made at units in India and agreed to pay the money to settle criminal and legal suits.
In 2014, Daiichi, that has spent over nearly $4 billion to acquire about 58% stake in Ranbaxy finally decided to exit from the company. In April 2014, it decided to merge Ranbaxy with home grown multinational Sun Pharma. The merger was completed in March 2015.
Read more : Economic Times
WASHINGTON: It wasn't the best Valentine's Day for Ranbaxy. US authorities conducted a raid on the New Jersey premises of Read more
