NEW DELHI: Malvinder Singh has filed an affidavit in the Delhi High Court saying that the spiritual head of Radha Soami Satsang Beas, Gurinder Singh Dhillon, and his family owe him ₹1,473 crores related to money lent to them over a ten-year period till 2016.
Dhillon is also Singh’s uncle.
In the affidavit, filed last week, Singh alleged that over 2007-12, the Dhillion family took various loans totaling ₹578 crores from RHC Holding Pvt Ltd and Todays Holding, both of which was ultimately funded by him and his brother Shivinder Singh.
To repay the loan, the Dhillion family took ₹489 crores from various companies in the Best Group–Fern Healthcare, Best Healthcare, Adept Creation, Best Cure, and Modland Wears–which was then owned by Gurinder Singh Dhillon and his associates.
However, in 2017, Shivinder Singh bought the Best Group from Dhillon without due diligence, and by misusing his relationship with his brother, Malvinder alleged.
“In this regard, it is apposite to mention that in and around December 2017, Mr. Shivinder Mohan Singh while misusing his position in the Answering Respondent (Malvinder Singh) and concealing the precarious financial health of the companies under the Best Group, initiated the process to acquire and take over the aforesaid companies through the Answering Respondent, without any due diligence. Mr. Shivinder Singh misrepresented that this takeover is profitable,” Malvinder Singh said.
In October-November 2018, auditors had pointed out that the companies were debt-ridden.
These companies had extended financial facilities to either Gurinder Dhillon, his family members, his close associates, or the companies owned, controlled, or managed by the Dhillon family.
Malvinder Singh’s affidavit was in response to another by his uncle in November last year, wherein Dhillon had claimed that the brothers and their entities owed them ₹74 crore due to certain transactions.
In his affidavit, Malvinder Singh alleged that Dhillon had attempted to mislead the court.
“The answering respondent submits that the contents of the affidavits filed by Mr. Gurinder Singh Dhillon are false and misleading. Mr. Gurinder Singh Dhillon has attempted to mislead this Hon’ble Court by not presenting the full facts and is guilty of suppression,” Malvinder Singh said.
The affidavit by Malvinder Singh marks a new twist to the case involving the Singh brothers and their repayment of ₹3,500 crores as an arbitration award to Japanese firm Daiichi Sankyo Co Ltd. Mint has reviewed a copy of the affidavit.
In 2016, a Singapore tribunal had asked the Fortis promoters to pay ₹2,600 crores to the Japanese drug maker in a case involving Ranbaxy Laboratories’ regulatory issues. The amount had ballooned to ₹3,500 crores with interests.
While the amount has been enforced on the authority of the Delhi High Court, and later upheld by the Supreme Court, the apex court has also held completion of the takeover of the Singh brothers’ formerly owned Fortis Healthcare Ltd by Malaysia-based IHH Healthcare Berhad.
Apart from holding the Singh brothers guilty of contempt of court, the apex court had in November also initiated suo motu contempt proceedings against Fortis Healthcare for the stake sale and refrained from lifting its stay on IHH’s open offer to buy an additional 26% stake from other Fortis shareholders.
