The sale of controlling 31% stake by Fortis Healthcare to Malaysian main IHH Healthcare has come underneath cloud with the Supreme Court on Thursday directing 17 lenders to the previous, which incorporates Yes Bank, Axis Bank, HDFC Ltd, Citicorp Finance, RBL Bank and Credit Suisse, to furnish by February 24 the main points of loans that had been superior to the hospital chain and the securities that had been provided by former promoters Malvinder and Shivinder Singh in reference to such mortgage preparations.
Thursday’s order of the SC comes after it had requested the lenders on February 11 to clarify their position within the switch of Fortis Healthcare’s shares to IHH Healthcare Berhad regardless of the Delhi High Court’s and its instructions barring any such switch.
IHH had in July 2018 purchased a 31% controlling stake in Fortis Healthcare for Rs 4,000 crore by way of the bidding route. Later on December 15, 2018, the SC had directed that establishment be maintained which had stalled the open provide which IHH was to make which might have seen its stake additional going up.
On Thursday, the apex court docket requested the banks and FIs to additionally furnish particulars of securities held by them in Fortis Healthcare (FHL) and its holding firm, Fortis Healthcare Holdings (FHHL), in addition to particulars of the shares they bought.
The lenders are additionally supposed to give the main points of the encumbered and unencumbered shares of FHL standing within the identify of FHHPL, held by them in September 2016 and on August 11, 2017. The apex court docket additionally directed banks to “to give details of shares of FHL standing in the name of FHHPL, which were put by them under encumbrance after August 11, 2017; to give details of shares of FHL standing in the name of FHHPL, sold by banks/FIs from January 2017”.
The SC additionally requested the banks to disclose whether or not such encumbrance created after August 11, 2017, was in pursuance of any recent association or settlement and, in that case, the main points of such settlement/association and whether or not underneath such settlement/association another safety was given by the pledgors; and likewise to give the worth of the encumbered shares as they stood in September 2016, on August 11, 2017, and on subsequent dates.
The court docket gave banks until time until February 22 to produce the information and posted the matter for additional listening to on February 24.
While Singh brothers instructed the Bench that it was the banks/FIs that bought the shares regardless of having details about the restraint orders, Japanese drugmaker Daiichi Sankyo, which is looking for enforcement of its arbitral award of Rs 3,500 crore in opposition to the brothers, has alleged collusion between them and their lenders because of which FHL shares had been transferred to IHH regardless of the promoter duo having given assurance to the HC that the shareholding wouldn’t be diluted.
Terming the Thursday’s order as a “positive development” that can assist Daiichi in executing its arbitration award, Kanika Singhal, accomplice, P&A Law Offices, the legislation agency dealing with the case for Daiichi, instructed FE, “the order will result in an investigation into the dealings between Singh brothers and the lenders pertaining to FHL shares… if the dealings and encumbrances are reversed, the shares which were promised to Daiichi can be liquidated to execute the award. More than 3 crore shares of Fortis, which were wrongly encumbered by 17 banks, are under enquiry”.
The Supreme Court had in 2019 held Singh brothers responsible of contempt for violating its earlier orders that had restrained them from divesting their shares in Fortis Healthcare. However, it gave them yet one more probability to purge themselves of the contempt if every of them deposited Rs 1,170.95 crore. Both the brothers are in Tihar jail in a case filed by Religare FinVest – an arm of Religare Enterprises, for allegedly inflicting wrongful loss price Rs 2,397 crore.