The Enforcement Directorate (ED) on Thursday arrested Malvinder Singh, former Ranbaxy Laboratories CEO and chairman, in connection with Rs 2,300 crore Religare Finvest Ltd (RFL) funds misappropriation case. The law enforcement agency also arrested ex-CMD of Religare Enterprises, Sunil Godhwani in the RFL case.
The Enforcement Directorate (ED) took both the accused in its custody inside the Tihar central jail in New Delhi, 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.
Malvinder Singh was arrested by the Economic Offenses Wing (EOW) of the Delhi Police from Ludhiana in Punjab on October 10. Hours before his arrest, his brother and former promoter of Religare Enterprises Shivinder Singh was also held for allegedly misappropriating funds of Religare Finvest Limited (RFL) to the tune of Rs 2,397 crore.
In December last year, Religare Finvest had filed a complaint against Malvinder Singh and his brother Shivinder Singh. In May, both were charged with cheating, fraud and misappropriation of funds.
In a statement post the arrests, the EOW said that Manpreet Singh Suri of Religare Finvest Ltd (RFL) had levelled allegations against the Singh brothers, among others.
"The alleged persons having absolute control on Religare Enterprises Ltd and its subsidiaries put Religare Finvest in poor financial condition by way of disbursing the loans to companies having no financial standing and controlled by the alleged persons," the statement read.