Former Fortis promoter Shivinder Singh gets bail in money laundering case

The Delhi High Court on Thursday granted bail to former promoter of Fortis Healthcare Shivinder Mohan Singh in a money laundering case related to misappropriation of funds at Religare Finvest Ltd.

However, Shivinder, who is currently lodged in Tihar jail, will not be able to walk out as he has been booked in another case of fraud by the Economic Offences Wing (EOW).

Justice Anup Jairam Bhambhani granted bail to Shivinder, saying that there is "no rationale" in continuing his custody as undertrial. Pronouncing the order through video conferencing, the judge granted the relief to the former Religare Enterprises promoter on furnishing a personal bond of Rs 1 crore and two sureties by family members of Rs 25 lakh each.

The judge has asked the investigating officer of the Enforcement Directorate (ED) to request the Bureau of Immigration to open look out circular (LOC) in Shivinder's name to prevent any unannounced exit from the country.

Meanwhile, the court rejected the bail plea of former CMD of Religare Enterprises Ltd (REL) Sunil Godhwani and former CEO of REL Kavi Arora.

Shivinder Singh, his brother Malvinder, Sunil Godhwani, Kavi Arora and Anil Saxena were arrested by the EOW of Delhi Police in October last year over charges of fund siphoning filed by Manpreet Singh Suri of Religare Finvest. The complaint alleged that the accused had taken loans while managing Religare Finvest, but had invested these funds in other companies.

"They put RFL in a poor financial condition by disbursing loans to companies with no financial standing and controlled by them. The companies to which the loans were disbursed willfully defaulted in repayments and caused a loss to RFL to the tune of Rs 2,397 crore," the police had alleged.

On July 16, the High Court had reserved its order on the bail plea after hearing arguments from the counsel for Shivinder and the ED.

Shivinder's bail plea was opposed by the ED, contending that in the present case, money was diverted through a complex web of transactions and finding the trail was not easy.

Earlier in April, Shivinder had applied for interim bail for eight weeks in view of the COVID-19 pandemic, which was rejected by the court saying that he does not fulfil criteria to be released.

Also Read: Ex-Fortis promoter Shivinder Singh seeks bail on coronavirus ground; HC rejects plea