Fortis Defends Itself After SC Allows Forensic Audit
Fortis Healthcare claims it is a stranger to the Daiichi Sankyo vs Singh Brothers dispute as the Supreme Court allows a forensic audit.
Fortis Healthcare Limited has come forward to defend its position following a Supreme Court decision that allows a forensic audit to proceed in the long-standing legal battle between Daiichi Sankyo and the Singh Brothers. The healthcare giant has asserted that it was a "complete stranger" to the core dispute and played no part in the alleged dissipation of shares by its former promoters.
Supreme Court Order and the Forensic Audit
In a formal disclosure to stock exchanges, Fortis addressed the Supreme Court's order dated September 25. The apex court disposed of the company's Special Leave Petition, which had challenged a Delhi High Court directive from August 31. That directive had ordered a forensic audit in the case of Daiichi Sankyo Company Limited vs. Malvinder Mohan Singh & Ors.
While the Supreme Court permitted the audit to move forward, it provided several key clarifications:
- The court noted that various observations made in the Delhi High Court judgment were tentative and intended only to establish the grounds for a forensic audit.
- The audit is to be conducted independently.
- The findings of the audit will not be influenced by the previous observations made by the High Court.
Fortis Claims No Involvement in Promoter Disputes
The company has been vocal about its lack of connection to the legal friction between the original promoters and Daiichi Sankyo. Fortis emphasized that it was never a party to the arbitration proceedings and held no status as a judgment debtor or a garnishee regarding Daiichi Sankyo’s decree.
Key points raised by the company include:
- No Control Over Shares: As a publicly listed entity, Fortis stated it possessed no authority or mechanism to control how its erstwhile promoters transferred their personal shareholdings.
- No Financial Gain: The company clarified that it received no money or proceeds resulting from the alleged dissipation of the Singh Brothers' shareholding.
- No Penalties Imposed: Fortis pointed out that the Delhi High Court has not levied any liability, fine, or penalty against the company itself.
The Shift to New Management
Fortis detailed the timeline of its corporate restructuring to distance itself from the previous leadership. Following the resignation of the Singh Brothers from the Board and the drop of their shareholding below one per cent by March 2018, institutional shareholders took charge by appointing independent directors.
This independent Board initiated a competitive bidding process in June 2018 to find a new investor. This process eventually led to the involvement of Northern TK Venture Pte. Ltd., part of the IHH Healthcare Berhad group, which invested through a fresh issue of equity shares in November 2018. Fortis maintains that this transaction occurred months after the Singh Brothers had severed all ties with the company and involved no transfer of their specific shares.
"The Company is confident that an independent forensic audit will attest to the above incontrovertible facts," the company stated, reiterating its commitment to transparency and regulatory compliance as it continues its operations under its current promoter.