Indian Pharma Brothers Blow Through Billions Arrested On Embezzlement Charges

Recently, the Singh brothers were arrested by the economic offenses department of the Delhi police. They’ve been charged with cheating, criminal conspiracy, and criminal breach of trust. Religare Finvest, a financial services firm in the brothers’ portfolio – filed a complaint alleging that the brothers embezzled money it loaned to companies related to them or their associates. The police claim that the firm gave corporate loans to companies owned by the brothers and other executives. The loans were then used to pay off existing debt and liabilities of the companies. Those companies then defaulted in paying back those loans. The brothers inherited the multi-billion dollar Ranbaxy Laboratories from their father. The pharmaceutical company was sold in 2008 to Daiichi Sankyo. The brothers continued to run their chain of hospitals called Fortis Healthcare. They lost control of the hospital chain over mounting debt and allegations of fraud. The Singh brothers deny the charges against them. They maintain that Sunil Godhwani, the head of Religare was in charge and made the decisions about both the brothers’ finances and the loans made to companies. This claim is questionable as in 2018, the brothers withdrew about five billion rupees from Fortis’ accounts without the approval of the board. They were also accused that same year by an investor of siphoning 18 billion rupees from Religare. They are expected in court on Friday, November 1.