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New Delhi:
A Delhi courtroom Friday dismissed a bail plea of former Fortis Healthcare promoter Shivinder Mohan Singh in a case associated to alleged misappropriation of funds at Religare Finvest Ltd (RFL), saying financial offences having deep rooted conspiracies wanted to be thought-about as grave offences affecting the financial system of the nation.
It additionally stated that the potential for the witnesses being influenced by Shivinder Singh can’t be dominated out as throughout investigation statements of administrators of the businesses to which loans had been prolonged by RFL had been recorded and so they had been discovered to be related to him.
Additional Sessions Judge Sandeep Yadav stated it was prima-facie established from the investigation that Shivinder Singh in conspiracy with others induced wrongful acquire to RFL to the tune of Rs 2,397 crore.
“The money which was given by RFL to 14 companies ultimately reached RHC Holding Pvt Ltd, a company controlled and owned by Shivinder Mohan Singh and Malvinder Mohan Singh. Thus, applicant (Shivinder) enriched himself illegally at the cost of RFL. Applicant was exercising deep control over the affairs of RFL through REL.
“Various committees which permitted the mortgage from RFL had members from RFL and REL. Thus the applicant can’t distance himself from the affairs of RFL. It is the case involving big financial fraud. Offences dedicated in such circumstances are to be handled as critical offences,” the court said in its order.
It further said in the economic offences, it was the magnitude of the offence which will determine the severity of the offence.
“It has been held in catena of judgments that financial offences represent a category aside and must be visited with completely different approaches within the matter of bail. Economic offences having deep rooted conspiracies and involving lack of public funds must be seen critically and thought of as grave offences affecting the financial system of the nation,” it said.
“Loans had been prolonged by RFL to the entities solely on the bottom that these entities had been recognized to the promoters. Thus, prima facie it’s established that RFL was put to wrongful loss and wrongful acquire was prolonged to RHC Holding Pvt Ltd which is managed by Malvinder Mohan Singh and Shivinder Singh,” it said.
The court further said, “Considering the seriousness and gravity of allegations, notably the magnitude of quantity concerned in addition to the potential for accused tampering with proof and influencing witnesses, it’s concluded that accused shouldn’t be entitled to bail.”
It, however, clarified that nothing stated in the order would tantamount to the merits of the case.
Shivinder Singh’s brother Malvinder Singh, 46, also a former Fortis Healthcare promoter, former CMD of Religare Enterprises Ltd (REL) Sunil Godhwani, 58, Kavi Arora, 48, and Anil Saxena were arrested by the Economic Offences Wing (EOW) of Delhi Police last year, for allegedly diverting RFL’s money and investing in other companies.
During the hearing, senior advocate N Hariharan, appearing for Shivinder Singh, told the court the entire evidence was documentary in nature and has been seized and thus there was no possibility of evidence being tampered with by him.
“Transaction in query was purely mercantile transaction which went awry and therefore no criminality is concerned. RFL is an impartial entity and might take its personal choice and the applicant/accused (Shivinder) was not concerned within the choice making technique of RFL,” his counsel argued.
N Hariharan further argued that the kinds of loans which were extended by RFL in the present case are practice in the mercantile world and there was nothing illegal in the transaction.
“RBI cautioned RFL however didn’t take any motion towards RFL to stop it from extending loans which reveals that no irregularity was dedicated by RFL. Applicant was by no means on the board of RFL and therefore not answerable for loans granted by RFL. Every transaction needed to undergo varied committees through which the accused has no say,” he argued.
Additional Public Prosecutor L D Singh, appearing for the police, opposed the bail plea saying huge financial fraud has been committed in the case and hence, Shivinder Singh was not entitled for bail.
Senior advocate Mohit Mathur, appearing for complainant RFL, also opposed the bail plea saying RFL did not get back its money and suffered losses because of the acts and omissions of Shivinder Singh and other persons.
He alleged it was the public money which was swindled by Shivinder Singh.
Mr Mathur further said the related party transaction committee had members from RFL and REL and therefore, Shivinder Singh cannot contend that he has no role in the transaction of RFL.
“Shivinder was additionally the director of two shell firms particularly Fern Healthcare and Modland Company to whom loans had been prolonged and thus, his goal was to maintain the cash his firm,” he alleged.
Advocate Sandeep Das, additionally showing for RFL, submitted that additional investigation was in progress and releasing Shivinder Singh on bail could hamper additional investigation.
The EOW registered an FIR in March final yr after it acquired a grievance from RFL’s Manpreet Suri towards Shivinder Singh, Sunil Godhwani and others, alleging that loans had been taken by them whereas managing the agency however the cash was invested in different firms. ED lodged a cash laundering case primarily based on this.
RFL is a bunch agency of REL, which was earlier promoted by Malvinder Singh and his brother Shivinder.
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