Malvinder, Shivinder Singh diverted public money to settle personal liabilities: EOW

Former promoters of Religare Enterprises Malvinder and Shivinder Mohan Singh embezzled public money from group's lending arm Religare Finvest (RFL) to settle their personal liabilities, according Delhi Police's Economic Offences Wing's (EOW) chargesheet against the brothers.

The Singh brothers had diverted the (public) money to 19 shell companies and used it to "square off their personal liabilities," the EOW said in its complaint. The chargesheet in the funds-misappropriation case was filed by RFL.

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RFL executives had sanctioned unsecured loans worth hundreds of crores to the said shell companies within two hours of receiving the proposals for the same. The officers approved the loans even when the (shell) companies (themselves) had not made any request for the same, the EOW said in the chargesheet, filed last week in a local court.

It further alleged that the Singh brothers joined Religare Finvest's board in 2016 with the intent of diverting money to these shell companies. Even the method of scrutinising documents for approving loans was all a "paper formality", according to the chargesheet.

Meanwhile, the Singh brothers denied any misconduct on their part. RFL is a group firm of REL, which was earlier promoted by Malvinder and his brother Shivinder Singh.

Also Read: Delhi Police books Godhwani brothers in Rs 18.8 crore Religare fraud complaint by Malvinder Singh

Singh brothers and Sunil Godhwani, the former CMD of Religare Enterprises Ltd (REL), along with two others were taken into custody last December in a case filed by the EOW of Delhi Police.

The ED alleged that both the brothers, along with others, transferred an amount of about Rs 1,000 crore to various persons from entities linked to the corporate loan book and finally, the money was siphoned off.

The agency started its investigation in the matter on the basis of a case lodged by the Delhi Police.

Malvinder (46), Shivinder (44), Godhwani (58), Arora (48) and Saxena were arrested by EOW for allegedly diverting the money and investing in other companies. The EOW registered an FIR in March last year after it received a complaint from RFL's Manpreet Suri against Shivinder, Godhwani and others, alleging that loans were taken by them while managing the firm but the money was invested in other companies.

Also Read: Religare Finvest money laundering case: Judicial custody of Malvinder, co-accused extended till Jan 6