New Delhi: In late night drama on Thursday, the economic offences wing (EOW) of the Delhi police detained former co-promoter of Religare Enterprises, Malvinder Mohan Singh, in Ludhiana, Punjab, for allegedly causing wrongful loss of ₹2,397 crore to Religare Finvest Ltd.
The detention came hours after his younger brother Shivinder Singh, former Religare Enterprises chairman, and managing director of the firm, Sunil Godhwani, along with two other officials from the companies were arrested in the same case.
A lookout notice had been issued against Malvinder on Thursday. “He was nabbed in Punjab, and we are getting him to Delhi,” a senior Delhi police official said on the arrest of Malvinder Singh.
The brothers have been accused by Religare Finvest of fraud and misappropriation. In December last year, Religare Finvest had filed complaint against Malvinder and Shivinder. In May, both were charged with cheating, fraud and misappropriation of funds.
Religare has accused them of diverting funds, claiming that loans were taken by Shivinder Singh while managing the firm but the money was invested in other companies. “RFL saw a change in management. When the new management took over, they found that a loan had been taken but the money had been invested in other companies linked to Singh and his brother. They filed a complaint with the EOW and subsequently, an FIR was registered,” said a senior police officer.
The companies which received the loans willfully defaulted in repayments and caused loss to RFL to the tune of Rs 2,397 crore. This irregularity and loss was pointed out and flagged during independent audit conducted by the Reserve Bank of India and the SEBI.
“The alleged persons having absolute control on Religare Enterprises Limited (REL) and its subsidiaries put Religare Finvest Limited (RFL) in poor financial condition by way of distributing the loans to the companies having no financial standing and controlled by the alleged persons,” the Economic Offence Wing of Delhi Police said in a statement.
The Enforcement Directorate had raided the premises linked to the two brothers in August in connection with a money-laundering case. The action was then seen in the backdrop of charges of alleged financial irregularities against the two brothers and the subsequent downfall of their businesses.
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