'Fortis audit isn’t ‘fishing & roving’ probe into banks'

The Supreme Court has clarified that a forensic audit ordered by the Delhi High Court is not a broad investigation into banks' affairs. The audit is specifically focused on FHL, Fortis Healthcare Holdings Private Limited, and Singh Brothers' companies, their commercial relationships, and judgment debtors. This audit is related to Daiichi Sankyo's pursuit of a Rs 3,500 crore arbitration award against former Ranbaxy promoters Malvinder and Shivinder Singh.

Daiichi acquired Ranbaxy from the Singh brothers in 2008 and won a Singapore arbitration award, but enforcement has been delayed due to litigation. The dispute also affected Fortis Healthcare, which was previously controlled by the Singh brothers. The High Court's August 31 order aimed to trace the flow of Fortis shares, funds, and related transactions, including IHH Healthcare's 2018 acquisition of a 31% stake.

The audit also examined 17 banks and financial institutions' roles in transactions involving pledged Fortis shares. However, the Supreme Court has narrowed the scope of the High Court's directives, emphasizing that Fortis was not a party to the Daiichi-Singh arbitration and had no involvement in the alleged dissipation of the former promoters' stake.