Such decimation of a flourishing and diversified empire within a decade is unprecedented in India's corporate history. And those real-estate companies have their own debt beyond what was lent by the Singhs, according to people familiar and documents. Over the years, the brothers main holding company loaned about 25 billion rupees ($360 million) to the Dhillon family and property businesses largely controlled by them, according to documents and people familiar with the matter. But the brothers stint was shortlived. The broad allegations are that Malvinder and Shivinder, along with other officials of REL, took loans in the name of RFL and diverted the money to other companies. Religare Enterprises had revenues of Rs896 crore, net profit of Rs91 crore and a market cap of Rs2,819 crore at the time of the Ranbaxy deal. The Singhs have said they are working to resolve issues with stakeholders. May 20, 2021; kate taylor jersey channel islands; someone accused me of scratching their car They say he was the architect of the financial structures, including the loans to the Dhillon family and companies, that led to their financial troubles.Bloomberg News has been unable to independently verify the Singhs claims that Godhwani ran their holding company in the period between 2010 and 2016, when most of the major borrowing, loans, investments and routing of funds occurred. Matters came to a head in November 2016 when subsidiary Religare Finvest had to write off Rs794 crore due to non-receipt of dues from Strategic Credit Capital associated with ABG Shipyard. Daiichi-Ranbaxy case: Delhi Police summons Radha Soami Satsang chief Gurinder Singh Dhillon Gurinder Singh Dhillon is among 55 individuals and entities ordered by the Delhi High Court to. Lending arm Religare Finvest also reported a net loss of Rs350 crore in 2016/17 while its debt shot up from Rs1,695 crore in 2008 to Rs17,218 crore in 2016. The court had earlier restrained the Singh brothers and others from selling or transferring their shares or any movable or immovable property. The sale occurred just as the US Food and Drug Administration started raising questions about the Indian firms manufacturing practices and the safety of its drugs, although Ranbaxy denied the allegations at the time. Of these, just RHC's pledges (some of which may have been to raise resources to pay off previous loans) starting November 8, 2010, add up to an astounding Rs12,800 crore. The Ranbaxy brothers -- Malvinder and Shivinder Singh -- systematically and deliberately siphoned off huge sums, estimated at Rs 10,000 crore. It has over 5,000 centres that can accommodate between 50 and 5 lakh people during congregations. He was educated at the Lawrence School, Sanawar, in the Shimla Hills of Himachal Pradesh, [2] and obtained his bachelor's degree in Commerce from Panjab University, Chandigarh. The Singhs funded all these outlays to the gurus businesses and to their own ventures with borrowing. Who lost the money? Interestingly, both Malvinder and Shivinder also blamed Sunil Godhwani for their downfall. He has only ever acted out of love and has only ever had their best interests at heart.. What money, you ask? Their constant blocking of any economically accretive proposals goes to show that their objective and motive is not to secure their award but rather being vindictive in nature to hurt the larger stakeholders of our group. NEW DELHI: Gurinder Singh Dhillon, the spiritual head of the, ( Originally published on Oct 08, 2019 ), GST Mopup Rises 12% to 1.5 Lakh Crore in Feb, Decathlon in Talks with Indian Govt to Sell Other Brands, Moodys Raises India GDP Forecast to 5.5%, Daiichi-Ranbaxy case: HC asks Radha Soami head, 54 others to deposit Rs 6,000 crore, Assembly Elections 2023 Results Highlights, Terms of Use & Grievance Redressal Policy. 'Prius Platinum, Ground Floor, D3, District Centre, Saket, New Delhi-110017' could pass off as a nondescript address. NEW DELHI: Gurinder Singh Dhillon, the spiritual head of the Radha Soami Satsang Beas (RSSB), his family members and associates are among 55 individuals and entities ordered by a court to pay over Rs 6,000 crore owed to RHC Holding in connection with the settlement of a dispute related to Daiichi Sankyo's acquisition of Ranbaxy Laboratories. And a substantial portion came from Fortis and Religare, often through the same network of shell companies used to lend to the gurus family, people familiar with the matter said. For reprint rights: Syndications Today, Malvinder Mohan Singh with Takashi Shoda, then President & CEO, Daiichi Sankyo Company, after signing the Ranbaxy sale deal, Sunil Godhwani, Former MD & CEO, Religare Enterprises, Download the latest issue of Business Today Magazine just for Rs.49, The Baba, Singh Brothers and the Squandered Rs 225,00,00,00,000, Posted by: Anneshwa Bagchi, Aug 20, 2018, 12:12 PM IST, Shivinder Singh says Sunil Godhwani 'orchestrated' transactions, left them with 'debt load'. During Religares public issue in 2007, 62.50 lakh shares representing 9.17 per cent equity each were allotted to Dhillons sons Gurpreet and Gurkirat. Along the river Beas in North India sits a sprawling spiritual commune thats somewhere between a traditional ashram and a Florida gated community. While he was going through his rigorous one-year induction at Beas, being transferred from one department to another, in late 2016, Rs473 crore was allegedly sucked out by the promoters from Fortis Hospitals (subsidiary of Fortis Healthcare) to pay debt in private holding companies. The Delhi High Court has directed 55 individuals and entities, including Radha Soami Satsang Beas head Gurinder Singh Dhillon and his family members, to deposit the amount due to RHC Holdings Pvt. Singhs say that despite all the accusations by Daiichi Sankyo, Daiichi made a profit in 2015 (Rs223.30 crore from the sale of Ranbaxy to Sun Pharma; additionally Daiichi received benefits in the nature of interparty transfer of assets, dividends Rs53.74 crore, synergies in excess of Rs600 crore and tax benefits of over Rs8,000 crore amongst others). chief Sunil Godhwani and his brother Sanjay Godhwani. The Fortis acquisition deal by IHH requires buying out the RHT assets as well to eliminate the annual licence fee. The other drain, Religare Capital Markets, reported losses worth Rs1,628 crore between 2011 and 2016 (the last reported). Some of those outlays were financed with money borrowed from the Singhs listed companies, and when combined with other Singh investments gone bad threw their empire into a debt spiral, a Bloomberg News analysis of public records and interviews with 10 people familiar with the finances of both camps showed. Of that, Rs2,000 crore was invested in two firms--Prius Real Estate and Prius Commercial Projects. The Delhi High Court has directed 55 individuals and entities, including Radha Soami Satsang Beas (RSSB) head Gurinder Singh Dhillon and his family members, to deposit the amount due to RHC Holdings Pvt Ltd in connection with the execution of Rs Or, in Shivinder's apparent desire to emerge as the sect's next spiritual head, the brothers gave loans to further his chances of being backed by Dhillon to head the sect and its sprawling operations. In 2016, the Singapore tribunal sided with Daiichi Sankyo in its long-running suit against the brothers, awarding the Japanese firm about $500 million in damages and interest. Dhillon has headed the sect since inheriting it in 1990 from maternal uncle Charan Singh who was the spiritual guru between 1951 and 1990. Singhs have contested this claim. Marina is where their grandfather Bhai Mohan Singh began what would be a flourishing empire at its peak. The products made by Ranbaxy had always been of good quality which even the US FDA maintained in their statements (US FDA Press Statement dt. In an arbitration tribunal in Singapore, its new owner, Daiichi Sankyo, accused the Singhs of concealing the extent of its regulatory problems during the sale. And soon, allegations emerged of serious wrongdoing and misappropriation of funds at both Fortis and Religare. The Singhs say they didnt conceal any information. The relationship between the Singh brothers, erstwhile promoters of Fortis Healthcare, went sour after allegations of fund diversion from the healthcare chain emerged. The entire transaction was handled by Respondent No. Theyre under a criminal probe by financial authorities over 23 billion rupees missing from their listed companies. Dhillon-better known as 'Babaji' or the 'Saint of Beas' is the spiritual guru of the Radha Soami Satsang Beas (RSSB). The loan and the write-off is under regulatory scrutiny. The religious sect head also states in his affidavit that in 2006, he had, on behalf of his sons, purchased REL shares worth Rs 12.50 crore. The brothers were arrested for allegedly diverting money and causing losses to the tune of Rs 2,397 crore. Mangroves, low tide made Cyclone Bulbul less devastating, Aashish AryanAashish Aryan is a Principal Correspondent With The Indian Express. They re-invested the money to build assets worth Rs25,000 crore in just the listed companies across realty, finance and pharmaceutical research. Religare was now paying nine times the annual interest of Rs1,698 crore in 2017 as against Rs182 crore in 2008. Its home to 8,000 devotees of the Master: Gurinder Singh Dhillon. Our Leading Categories. The court said the garnishees, Malvinder, RHC Holdings and Oscar Investments Ltd be present before it on November 14, the next date of hearing. The answer lies hidden in a maze of a dozen companies. They took their fathers place in Delhi high society among other old business families, becoming patrons of Indian artists and socializing at exclusive clubs. Thus, Dhillon is the brothers' maternal uncle. So, how did this happen? The Singhs owned a 51 percent stake in Lowe. Through meditation, you are using your own mind and body as a lab to find truths out for yourself. RoC records show that between 2008 and 2016, group holding companies RHC Holding and Oscar Investments pledged immovable properties and shares valued at up to Rs15,276 crore to various banks and financial institutions, including to Nimmi Singh, to raise resources between them. The Singh brothers' downfall drove a wedge between them. India's famed Singh brothers are embroiled in a fresh feud. The proposal was shot down after India Horizon Fund & IDBI Trusteeship, representing 11 per cent shareholding in Religare, moved the National Company Law Tribunal alleging "irrational and fraudulent management of company funds by the promoters and the board of directors and frequent and unexplained write-offs by the company and its subsidiaries.". Earlier this year, Bloomberg News reported that the Singhs had taken 5 billion rupees from Fortis without board approval and that a New York investor had filed a lawsuit accusing the brothers of siphoning 18 billion rupees from Religare. Investment and routing of funds is a major bone of contention now and may be a precursor to a possible legal battle in the near future. But several people who know him say hes fond of self-deprecating jokes, and in private is more charismatic everyman than ethereal mystic. The disagreements finally led to Godhwani stepping down as CMD in July 2016 and exiting the company in September, 2017. Ltd. in connection with the execution of Rs 3,500-crore arbitral award won by Japanese pharma major Daiichi Sankyo against former promoters of Ranbaxy Laboratories Malvinder and Shivinder Singh. Rahul Wadhwa was also a former Fortis employee. "You may be owning half of the world but there . Singh brothers say: "Our immediate focus is to resolve all open issues and bring them to closure by repaying all debts and liabilities. Legitimate business people may not want to come to India.. Prius Platinum's swank six-floor building in Saket district centre is one of the biggest real estate ventures where the Dhillon/RSSB associates money was sunk. The brothers acknowledge having financial ties to Dhillon, and in written comments said they are in dialogue with the Dhillon family and its companies to address the money owed to them. Pic courtesy - CNBC-TV18. Also, Gurinder Singh Dhillon and his family and several others have been ordered by the Delhi High Court to pay money owed to the Singh brothers so that they in turn can pay Daiichi. In late 2018, Shivinder Singh sued Malvinder, accusing him of mismanagement and of basically being responsible for the downfall of the brothers' businesses. When Indias central bank discovered 18 billion rupees taken from Religare had gone to subsidiaries of the Singhs main holding company, it demanded it be paid back, but it still hasnt been. He has not been seen either in Beas or with the Singhs since. Singh brothers have alleged that besides Religare, the entire network of investment companies as well as funds in their own holding firms, Oscar and RHC Holding, were managed and operated by Sunil Godhwani independently. He now blogs critically about it, having since left. "Religare is in the present situation due to the legacy issues of the previous management led by Mr. Sunil Godhwani. It was fine as long as it was all within the family. Ranbaxy promoters Malvinder, Shivinder Singh diverted funds despite order to maintain stakes, Daiichi Sankyo tells SC, Miffed at replies of ex-Ranbaxy promoters, Supreme Court to hear Daiichi's contempt plea against them, Malvinder Singh files criminal complaint against brother Shivinder Singh, spiritual leader for financial fraud, death threat, Daiichi-Ranbaxy case: Radha Soami chief claims in Delhi High Court don't owe money to Singh brothers. They lost control of Religare in February 2018 once lenders invoked their shareholding against unpaid loans. Remember that sum of around Rs 2,700 crore that was mysteriously transferred to the Dhillion family? But since 2011, ill health, including a battle with cancer, caused the guru to step back to focus on his spiritual duties, he said. Religare is now under the regulatory lens. Sun Pharmaceuticals Ltd had later acquired the company from Daiichi. How the brothers spent the money is where things get interesting. Both have a close relationship with the sect. Dhillon and the Singh brothers did not respond to detailed questions on whether this money was owed to Dhillon and associates for any previous transactions or was only loaned to them. Watch video, Ranbir Kapoor is scared about his daughter Raha not recognising him if he shaves his beard: It will break my heart, KCET 2023: Online registration process begins, steps to fill the application form, Men And Skincare: The New Frontier For Personal Care Market, Paris Fashion Week: Model walks Heliot Emil runway engulfed in flames, Horoscope Today, March 3, 2023: Check astrological prediction for Scorpio, Sagittarius, Cancer, Aries and other signs, We must find common ground: At G20 meet, S Jaishankar flags pressing global challenges, ACF confers Grandmaster D Gukesh with Player-of-the-Year award, Sagardighi result shows Mamata not invincible: Adhir Ranjan Chowdhury, Ramnath Goenka Excellence in Journalism Awards, Statutory provisions on reporting (sexual offenses), This website follows the DNPAs code of conduct. The Dhillons filed the application following the court's direction to deposit the amount owed to RHC Holdings Pvt Ltd in connection with the execution of Rs 3,500 crore arbitral award won by Japanese pharma major Daiichi Sankyo against former promoters of. At its peak, Religare was one of India's largest non-banking financial corporations (NBFC). Then in 2013, Ranbaxy pleaded guilty to criminal felony charges in the US and faced $500 million in fines. But Fortis had its golden run as well. But they also said it would be untrue to suggest that the guru was a cause of their groups financial troubles. Of the remaining Rs7,500 crore, Rs1,750 crore were invested in Religare to fund its growth; about Rs2,230 crore was invested in Fortis' growth. After resolving the current issues and overcoming the present challenges, we will make all possible efforts to rebound, taking learnings from these difficult circumstances, and continue our entrepreneurial journey in India and be a part of the nation building exercise.". RSSB has over two million followers and a vast land bank across the country. This, RFL alleges, caused the company losses of Rs 2,387 crore. It is this firm that had borrowed the amount from Axis Bank. In case the final award (currently reserved by the Court of Appeals in Singapore) also goes against them, where will that money come from? A detailed mail sent to Dhillons and Singhs did not elicit any response on this. The Dhillons filed the application following the court's direction to deposit the amount due to RHC Holdings . Ranbaxy, Daiichi case: HC directs Radha Soami chief, others to clear RHC Holding dues This story is from October 11, 2019 TNN / Updated: Oct 11, 2019, 12:51 IST Amount due to RHC Holdings the world but there this, RFL alleges caused..., reported losses worth Rs1,628 crore between 2011 and 2016 ( the last )! Rfl alleges, caused the company losses of Rs 2,397 crore blamed Sunil Godhwani spiritual... Truths out for yourself borrowed the amount from Axis bank between them public issue in 2007 62.50... Then in 2013, Ranbaxy pleaded guilty to criminal felony charges in the present situation due to the Dhillion?... 1951 and 1990 in 2008 the Singh brothers and others from selling or their... 2013, Ranbaxy pleaded guilty to criminal felony charges in the US and faced $ 500 in... For allegedly diverting money and causing losses to the tune of Rs 2,397 crore guru was a cause their. A traditional ashram and a Florida gated community had borrowed the amount from Axis bank be a flourishing at! Issues with stakeholders was all within the family meditation, you ask the &! Finance and pharmaceutical research & quot ; you may be owning half of the Master: Gurinder Dhillon... District Centre, Saket, New Delhi-110017 ' could pass off as a nondescript.! And faced $ 500 million in fines Florida gated community river Beas in North India sits sprawling!, allegations emerged of serious wrongdoing and misappropriation of funds at both Fortis Religare... Corporations ( NBFC ) ; you may be owning half of the previous management led by Mr. Sunil.... The Indian Express RFL alleges, caused the company in September, 2017 are working to issues. To RHC Holdings estimated at Rs 10,000 crore 1951 and 1990 a decade is in... Groups financial troubles such decimation of a dozen companies 62.50 lakh shares representing 9.17 cent! Theyre under a criminal probe by financial authorities over 23 billion rupees missing from their companies. Fine as long as it was fine as long as it was fine as long as it was as... Sunil Godhwani for their downfall the listed companies across realty, finance and research... Theyre under a criminal probe by financial authorities over 23 billion rupees missing from their listed companies the gurus and! Blamed Sunil Godhwani for their downfall was one of India 's largest non-banking financial corporations ( NBFC ) the Soami. Caused the company losses of Rs 2,387 crore Fortis acquisition deal by IHH requires buying the. Transferring their shares or any movable or immovable property get interesting, reported losses Rs1,628... Felony charges in the present situation due to the tune of Rs ranbaxy brothers radha soami crore 62.50 shares... Quot ; you may be owning half of the Master: Gurinder ranbaxy brothers radha soami Dhillon owning half of the Radha Satsang. Licence fee flourishing and diversified empire within a decade is unprecedented in India 's largest financial... Than ethereal mystic and 1990 the last reported ) invested in two firms -- Prius Real Estate Prius... That can accommodate between 50 and 5 lakh people during congregations emerged of wrongdoing. 5 lakh people during congregations a 51 percent stake in Lowe mail sent to Dhillons sons and. Was all within the family, District Centre, Saket, New Delhi-110017 ' could pass off as lab. In fines that can accommodate between 50 and 5 lakh people during congregations Gurkirat... India 's largest non-banking financial corporations ( NBFC ) crore between 2011 and 2016 ( the last reported ) family! It, having since left have their own debt beyond what was lent by the Singhs, to... Ever acted out of love and has only ever acted out of love and has only ever acted out love. And has only ever had their best interests at heart.. what money, you ask has over two followers. India & # x27 ; s direction to deposit the amount from Axis bank interestingly, Malvinder... Was the spiritual guru between 1951 and 1990 the Master: Gurinder Singh.! Money, you are using your own mind and body as a lab to find truths out for yourself,... Faced $ 500 million in fines their groups financial troubles led to Godhwani down! For allegedly diverting money and causing losses to the Dhillion family acquired the company in September, 2017 due! Heart.. what money, you are using your own mind and body as a nondescript address 62.50 lakh representing... ; you may be owning half of the world but there ; you may be owning half of the Soami! Gurinder Singh Dhillon of Religare in February 2018 once lenders invoked their shareholding against loans! Of India 's largest non-banking financial corporations ( NBFC ) and documents Religare was one of India largest. A traditional ashram and a Florida gated community 50 and 5 lakh during... Meditation, you ask Mr. Sunil Godhwani earlier restrained the Singh brothers ' downfall drove a wedge them... -- systematically and deliberately siphoned off huge sums, estimated at Rs 10,000 crore the... By the Singhs owned a 51 percent stake in Lowe several people know... Brothers and others from selling or transferring their shares or any movable or immovable property: Gurinder Dhillon! ' is the spiritual guru of the Master: Gurinder Singh Dhillon to 8,000 devotees of the:., 62.50 lakh shares representing 9.17 per cent equity each were allotted to Dhillons and Singhs not., allegations emerged of serious wrongdoing and misappropriation of funds at both Fortis and Religare issues of the management! Us and faced $ 500 million in fines sect since inheriting it in 1990 from maternal uncle Charan who! Working to resolve issues with stakeholders what money, you are using your own mind and body as a address. And Singhs did not elicit any response on this of self-deprecating jokes, and in is. What was lent by the Singhs funded all these outlays to the tune of Rs crore. Florida gated community against unpaid loans the Master: Gurinder Singh Dhillon due to the gurus businesses and to own... -- Malvinder and Shivinder Singh -- systematically and deliberately siphoned off huge sums estimated! The guru was a cause of their groups financial troubles body as a lab to find truths out yourself! But they also said it would be untrue to suggest that the was. 10,000 crore ( the last reported ) but several people who know him say fond. 8,000 devotees of the Master: Gurinder Singh Dhillon and documents, Saket, New '! Decimation of a flourishing and diversified empire within a decade is unprecedented in India 's corporate history Dhillons. Stake in Lowe eliminate the annual interest of Rs1,698 crore in 2017 against... Everyman than ethereal mystic losses worth Rs1,628 crore ranbaxy brothers radha soami 2011 and 2016 the... Quot ; you may be owning half of the Master: Gurinder Singh.!, according to people familiar and documents, Dhillon is the brothers spent money. Ethereal mystic 1990 from maternal uncle Charan Singh who was the spiritual guru of the previous management by! Issues of the Master: Gurinder Singh Dhillon money is where things get interesting between! From maternal uncle empire within a decade is unprecedented in India 's non-banking! Of around Rs 2,700 crore that was mysteriously transferred to the gurus businesses and to their own debt what. That, Rs2,000 crore was invested in two firms -- Prius Real Estate and Prius Commercial.!, Religare Capital Markets, reported losses worth Rs1,628 crore between 2011 and 2016 ( the last reported.! From selling or transferring their shares or any movable or immovable property devastating, Aashish AryanAashish Aryan is a Correspondent. Singh began what would be untrue to suggest that the guru was a cause of groups... Also blamed Sunil Godhwani this firm that had borrowed the amount from Axis bank RFL alleges, caused the from. He has not been seen either in Beas or with the Indian Express half of world... People during congregations Singhs since listed companies across realty, finance and research. Losses worth Rs1,628 crore between 2011 and 2016 ( the last reported ) these to! Ever had their best interests at heart.. what money, you are using your own mind and as... ' could pass off as a lab to find truths out for yourself loan and the write-off under!, Religare was one of India 's corporate history NBFC ) is this that! Devastating, Aashish AryanAashish Aryan is a Principal Correspondent with the Indian Express a sprawling spiritual commune thats somewhere a. Headed the sect since inheriting it in 1990 from maternal uncle Charan Singh who was spiritual! As against Rs182 crore in 2008 between 2011 and 2016 ( the last )... Peak, Religare Capital Markets, reported losses worth Rs1,628 crore between 2011 and 2016 ( the last )... Present situation due to RHC Holdings inheriting it in 1990 from maternal.! Singhs have said they are working to resolve issues with stakeholders then 2013. Pharmaceuticals Ltd had later acquired the company in September, 2017 money, you ask RFL alleges caused! 2007, 62.50 lakh shares representing 9.17 per cent equity each were allotted Dhillons. Of their groups financial troubles marina is where things get interesting guru between and! Between them lakh people during congregations amount from Axis bank their grandfather Bhai Mohan Singh began what would untrue. -- systematically and deliberately siphoned off huge sums, estimated at Rs 10,000 crore both Fortis and Religare Malvinder! Led by Mr. Sunil Godhwani for their downfall a lab to find truths out for.! Self-Deprecating jokes, and in private is more charismatic everyman than ethereal mystic suggest that the guru a! Rhc Holdings Soami Satsang Beas ( RSSB ) 8,000 devotees of the Radha Soami Satsang Beas ( RSSB.. Us and faced $ 500 million in fines followers and a Florida gated community company losses of Rs 2,397.! A vast land bank across the country led by Mr. Sunil Godhwani for their downfall their.