Fortis probe finds lapses in system

The loans were given to its founders without board approval and enough collaterals, it added. The firm, which is embroiled in a takeover battle, also annulled Sept 2016 appointment of former executive chairman Malvinder Singh as ‘Lead: Strategic Initiatives’ and will seek to recover payments made to him in that role as well as any company asset in his possession. 

Singh brothers had resigned as directors from the board of Fortis Healthcare in February this year, following the Delhi High Court order upholding the Rs 3,500 crore arbitral award in favour of Daiichi Sankyo. 

Malvinder, who was appointed Lead Strategic Initiatives for five years with effect from Oct 1, 2016, at a remuneration of Rs 12 crore pa, had received Rs 6 crore during 2016-17 and a proportionate sum for 2017-18. 

Fortis, which had initiated an independent investigation through an external legal firm in February this year, following allegations of siphoning of cash by the founding family, said the probe report has been submitted to the Sebi and Serious Fraud Investigation Office. Fortis has made provisions totalling around Rs 580 cr in Q4 of 2017-18 fiscal pertaining to the loans whose “recoverability is doubtful.”