22 February 2019: The new management of Religare Finvest has filed an insolvency petitionalleging diversion of funds by erstwhile promoters Malvinder and Shivinder Singh.
The National Company Law Tribunal (NCLT) will hear the petition against a cluster of 19 companies that are allegedly linked to the brothers, said two people with the direct knowledge of the matter. The companies were used to siphon off loans, they said. Religare Finvest has claimed Rs 2,257 crore from the former promoters.
The non-banking finance company (NBFC) didn’t respond to queries. The matter will be heard by the NCLT’s Delhi bench in early March.
The 19 companies, which include A&A Capital Serivces, AD Advertising Pvt, Artifice Properties Pvt and Volga Management and Consultancy, had allegedly been sanctioned loans as the promoters vouched for them. An external audit was also conducted to prove the links, said the people cited above.
This comes as the Singhs appear to be at war with each other. Shivinder Singh alleged in an NCLT petition that Malvinder Singh and Sunil Godhwani, the former chief of Religare Enterprises, colluded to divert Rs 750 crore from Religare Finvest and another Rs 473 crore from Fortis Healthcare to RHC Holding, the flagship holding company of the Singh brothers, ET reported on September 7 last year. More recently, Malvinder accused Shivinder, the spiritual head of the Radha Soami Satsang Beas and Godhwani of criminal conspiracy, cheating and fraud for allegedly siphoning off thousands of crores from RHC Holdings.
Under new management, financials seem to be improving. Religare Enterprises posted a loss of Rs 10.33 in the December quarter, down from Rs 45.14 crore a year ago. Total income rose to Rs 12.23 crore from Rs 11.85 crore, it said in a regulatory filing on Tuesday.