Indian court orders probe in Fortis asset diversion case, Malaysia's IHH says

According to Business Recorder, Malaysia's IHH Healthcare said on Tuesday that the Delhi High Court has ordered a forensic audit tied to alleged diversion of assets by Fortis Healthcare's former promoters. The probe will examine how the former promoters' Fortis shares were disposed of, how control of the Indian hospital operator later shifted, and what role other stakeholders played.

The dispute traces back to a claim by Daiichi Sankyo that the Singh brothers, Malvinder Mohan Singh and Shivinder Mohan Singh, moved or sold assets that could have covered a 2016 arbitration award from a Singapore tribunal. That award directed the brothers and related parties to pay 25.62 billion Indian rupees ($269 million). Daiichi has since told the Delhi court that the sum owed has grown to 53 billion Indian rupees.

IHH said it is not involved in the enforcement proceedings targeting the former promoters, while the order issued on Monday also requires scrutiny of its share acquisition in Fortis made through Northern TK Venture Pte. Fortis acknowledged the judgment and said the ruling creates no monetary obligation for it. IHH has 190 healthcare sites spread across 10 countries, whereas Fortis operates 36 sites with more than 6,000 beds in India.