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Informist, Tuesday, Sept. 15, 2026

 

NEW DELHI – YES Bank has moved the Supreme Court against the Delhi High Court's Aug. 31 order directing forensic audit of banks and financial institutions to investigate the transactions between Fortis Healthcare Ltd.'s former promoters Malvinder Singh and Shivinder Singh, their companies, and Religare Group. The forensic auditor was directed by the high court to examine the role of banks, and identify the loan facilities secured by Fortis Healthcare shares, the creation and variation of security, maintenance of security margins, operation of contractual top-up obligations, invocation and sale of pledged shares, release of security, and the outstanding liability corresponding to each transaction.

 

YES Bank said that it was neither a party to the arbitral award nor was made a party to the execution proceedings by Japanese pharma major Daiichi Sankyo, and hence, no allegations or findings were made against it to mandate a forensic audit. However, YES Bank clarified that it does not challenge the forensic audit of the affairs of Fortis Healthcare, Singh brothers and the Religare Group of companies, and also does not resist furnishing information genuinely relevant to tracing their transactions with the bank, to the extent such disclosures were in compliance with existing laws and permissible.

 

The high court's order came on Japanese pharma major Daiichi Sankyo's application seeking forensic audit on transactions, in a case in which the company sought execution of an INR-35-billion arbitral award to be paid by the Singh brothers. Daiichi Sankyo had also urged the appointment of the forensic auditor to probe transactions between Fortis Healthcare, Malaysia's IHH Healthcare Berhad and RHT health Trust of Singapore. It wanted a forensic audit into the conduct of 17 banks and financial institutions, including HDFC Bank, YES Bank, and Axis Bank. 

 

Daiichi Sankyo had said Religare Group, which now claims itself as having an independent existence, was party to the fraudulent transactions in which it pushed the companies of Malvinder Singh and Shivinder Singh to insolvency. Daiichi Sankyo said it was all done to frustrate the execution of the arbitral award which was passed in its favour and not with a view to resolve the companies of Malvinder Singh and Shivinder Singh through corporate insolvency resolution process. 

 

In 2018, IHH Berhad acquired 31% stake in Fortis Healthcare Ltd. However, before it could make an open offer to acquire another 26% stake, the Supreme Court in the same year imposed status quo on Fortis Healthcare's shareholding.

 

Daiichi Sankyo had been opposing the stake sale, saying it should not be allowed until Fortis Healthcare's former promoters Malvinder Singh and Shivinder Singh pay the INR 35 billion they owe to the Japanese company, by way of an arbitration award. The Japanese company had said the brothers managed to create encumbrances on their stake in Fortis Healthcare despite repeated undertakings before the Delhi High Court that they would not dilute their stake in Fortis Group.

 

On Tuesday, shares of YES Bank ended 1.8% lower at INR 23.07 on the National Stock Exchange, shares of Fortis Healthcare ended 0.8% lower at INR 880.10, while those of Religare Enterprises Ltd. ended 3.6% lower at INR 247.55 on the National Stock Exchange.  End 

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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