ED arrests ex-Fortis Healthcare promoter Malvinder Singh, Sunil Godhwani in RFL case

The Enforcement Directorate on Thursday arrested ex-Fortis Healthcare promoter Malvinder Singh, ex-CMD of Religare Enterprises Ltd Sunil Godhwani in RFL case. RFL is a subsidiary of the REL. Malvinder and Shivinder were earlier the promoters of REL.

The Agency took both the accused in its custody inside the Tihar central jail, where they are currently lodged in a case filed by the Delhi Police in relation to the alleged scam, a lawyer associated with the case said.

Both Singh and Godhwani will be produced before a metropolitan magistrate in the prison, when the ED is likely to seek their custodial interrogation. Singh and Godhwani are accused of laundering money, punishable under sections 3 and 4 of the Prevention of Money Laundering Act, the central agency said.

In October, The Economic Offences Wing (EOW) of Delhi Police had told a Delhi court that Fortis Healthcare's former promoters Malvinder Singh and his brother Shivinder, arrested for allegedly misappropriating funds of Religare Finvest Ltd (RFL), have disclosed that an amount of about Rs 1,000 crore has been transferred to various persons from the entities linked to corporate loan book which was then allegedly siphoned off.

In October, the police had ascertained that two had had absolute control on REL and its subsidiaries. "They put RFL in poor financial condition by disbursing loans to companies having no financial standing and being controlled by them. The companies to which loans were disbursed willfully defaulted in repayments and caused a loss to RFL to the tune of Rs 2,397 crore," police had alleged.