The SFIO will investigate the two companies to find out whether the fraud was indeed committed and how.
The Serious Fraud Investigation Office (SFIO) will soon summon Fortis promoters Malvinder Singh and Shivinder Singh in connection with alleged financial irregularities at Fortis Healthcare and Religare Enterprises, sources said.
The agency began a probe on Monday into the affairs of the two companies for any violation of the Companies Act, sources said. The Corporate Affairs Ministry has ordered the probe, under Section 212 of the Act, in ‘public interest’.
SFIO has been given three months’ time to complete the investigations. “We will analyse the documents and then summon the Singh brothers,” SFIO sources said.
The SFIO will investigate the two companies to find out whether the fraud was indeed committed and how.
“It has been alleged that around Rs 2,500 crore was taken from Religare and Rs 500 crore from Fortis by Malvinder Singh and Shivinder Singh,” sources said. The ministry has also received some complaints from the shareholders of these companies.
The Corporate Affairs Ministry sprang into action following the reports, alleging that the promoters of the Fortis Healthcare siphoned off money from Fortis and Religare without the approval of the board.
The ministry had taken suo moto cognizance of the matter and had been looking into the allegations.
SFIO can probe the affairs of a company either on receipt of a report of registrar or inspector, in the public interest or on request from any department of the central and state governments. If found guilty, the law provides for an imprisonment of up to 10 years for the person. The company can also be asked to wind up if the violations are found.
Fortis Healthcare has also come under the scanner of the stock market regulator, Securities Exchange Board of India (Sebi). The markets regulator has launched an investigation into the lapses in complying with the corporate governance and listing guidelines. On Saturday, Fortis informed the stock exchanges about the investigation by the regulator and that the Sebi has sought information and documents by February 26. Earlier, Sebi chairman Ajay Tyagi had said the regulator was examining the Fortis issue.
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