Malvinder and Shivinder Mohan Singh fined Rs 2600cr for withholding facts from Daiichi during $2.4 bn Ranbaxy sale

Malvinder Mohan Singh and Shivinder Mohan Singh, the former promoters of Ranbaxy Laboratories, were fined about Rs 2,600 crore ($400) million by the Singapore Court of Arbitration. They have been fined for concealing and misrepresenting facts from Daiichi Sankyo while they were selling the promoters' stake for $2.4 billion in 2008.

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The Japanese pharmaceutical company had filed the arbitration case in 2013 in Singapore, in which it had accused the Indian promoters of concealment and misrepresented facts. Further, it had asked to be compensated for losses it had to suffer.

The arbitration order has come as a major setback for Malvinder Mohan Singh, whose Younger brother Shivinder Mohan Singh has already stepped down from the executive role of group companies. He has since joined the Radha Soami Satsang Beas, the Punjab-based philosophical and spiritual organization headquartered in Beas near Amritsar.

It was in May 2013 that Ranbaxy, which was under the management control of Daiichi, was forced to reach a $500-million settlement with the US Department of Justice since it had faked test results to get FDA approvals for its medicines.

The US subsidiary of Ranbaxy had pleaded guilty to seven felonies relating to the manufacture and distribution of certain adulterated drugs made at its Indian units, and had even agreed to pay the money to settle all the criminal and legal suits.

In 2014, however, Daiichi, finally decided to exit from the company after spending over nearly $4 billion for Ranbaxy’s 58% stake, merging it with home grown multinational Sun Pharma.

Also read: Sun Pharma hands out walking papers to 18 top Ranbaxy executives

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