Shivinder Singh said on Tuesday he had filed a lawsuit against older brother Malvinder Singh.
Shares of Fortis Healthcare slipped as much as 2.4 per cent on Wednesday. The decline in Fortis Healthcare shares came after co-founder Shivinder Singh moved the National Company Law Tribunal (NCLT) against his elder brother Malvinder Singh. Shivinder, who has decided to break business ties with his sibling, said the case, which also accuses former chief of financial services firm Religare Enterprises Sunil Godhwani, was filed in the NCLT, reported news agency Reuters. Shivinder Singh said on Tuesday he had filed a lawsuit against older brother Malvinder Singh, alleging “oppression and mismanagement” at their joint businesses.
The case comes in the wake of financial troubles at the group businesses RHC Holding, Religare Enterprises and hospital chain Fortis Healthcare.
“The collective, ongoing, actions of Malvinder and Sunil Godhwani led to a systematic undermining of the interests of the companies and their shareholders,” Shivinder Singh said in a statement.
Fortis, which operates about 30 private hospitals in India, accepted an investment offer from Malaysia’s IHH Healthcare Bhd in July, ending months of speculation over control of the company. The brothers also sold their controlling stake in drugmaker Ranbaxy Laboratories, founded by their family, to Japan’s Daiichi Sankyo Co in 2008.
Meanwhile, benchmark equity indices were trading with mild losses amid lacklustre trade. At 10:57 am, Fortis Healthcare was trading at Rs 145.35 on the BSE, down 1.50 per cent from the previous close. At that time, the S&P BSE Sensex declined 43.62 points or 0.11 per cent to 38,114.30. The broader Nifty50 slipped 15.20 points or 0.13 per cent to trade at 11,505.10.
Fortis Healthcare chief financial officer Gagandeep Singh Bedi had resigned last month citing personal reasons. His exit will take effect on September 30.
Fortis Healthcare had reported a consolidated net loss of Rs 70.74 crore for the quarter ended June 30, as against a net profit of Rs 5.5 crore in the corresponding period a year ago. (With agency inputs)
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