Fortis moves SC against HC forensic audit order in company transactions

Fortis challenges forensic audit order in Supreme Court over alleged asset erosion during Daiichi Sankyo enforcement proceedings

Hospital chain Fortis Healthcare has moved the Supreme Court against a Delhi High Court order directing a forensic audit into the alleged erosion of assets by its former promoters, brothers Malvinder and Shivinder Singh, during enforcement proceedings initiated by Japanese drugmaker Daiichi Sankyo.

Delhi-based Fortis, in an exchange filing on Wednesday, said it has filed a special leave petition against the High Court (HC) order dated August 31.

The HC gave the order in enforcement proceedings arising from a 2016 arbitral award of Rs 2,562 crore in favour of Daiichi, with interest. Daiichi has claimed that the amount outstanding has since risen to around Rs 5,300 crore.

The award was passed in Singapore on April 29, 2016, and carried pre-award interest of 4.44 per cent and post-award interest of 5.33 per cent.

The award has survived challenges before the Delhi HC and Supreme Court, with Daiichi alleging that the Singh brothers had sold assets, pledged shares, including those in Fortis Healthcare, and diverted funds in violation of court orders and undertakings, thereby frustrating enforcement of the award.