That was shocking considering that, as recently as June 2008, they had hit gold with Rs9,576 crore in cash from Japan's Daiichi Sankyo for the sale of India's then largest pharmaceuticals company Ranbaxy Laboratories-an inheritance from father Parvinder Singh. But before we get to that, let's understand the family dynamics between the Baba, Gurinder Singh Dhillon, the brothers and family confidante Sunil Naraindas Godhwani. By its very nature, financial services business needs to raise debt to lend further. For his part, Dhillon also declined to be interviewed. The Singhs downfall comes as Prime Minister Narendra Modi pushes to increase transparency and attract more foreign investment to the worlds fastest growing major economy. Mobile & Tablets: Android Phones | Smartphones | Feature Phones | Unboxed Phones | Refurbished Phones | Tablets | CDMA Pho Malvinder and Shivinder Singh are the grandsons of Bhai Mohan Singh, a businessman from Pakistan's Rawalpindi who settled in Delhi after the Partition. Pic courtesy - CNBC-TV18. The Singhs resources were marshaled to help the Dhillon family build a real-estate empire. Loaded with massive cash, Religare and Fortis went on a rapid-fire expansion and acquisition spree. But in the secular world of money, Dhillon, 64, is a key character in one of the most dramatic collapses in the annals of Indian business: The unraveling of the financial and healthcare empire owned by the Singh brothers, Malvinder and Shivinder. RoC records say Prius Commercial is 84 per cent owned by Dhillons wife Shabnam and 16 per cent by RSSB Delhi head Yuvraj Narain Gorwaney. According to a Business Today report, the money earned from the Ranbaxy sale was spent in four parts: The Singh brothers used nearly Rs 2,000 crore to pay off taxes and loan repayments File image of Shivinder Singh and Malvinder Singh. A claim that is denied by Singhs. In case the final award (currently reserved by the Court of Appeals in Singapore) also goes against them, where will that money come from? The third figure in the Ranbaxy brothers' corporate battle is Gurinder Singh Dhillon, the head of Radha Soami Satsang Beas among the largest such communes in the world, with 20 mn followers in 90 countries, yet fiercely secretive. "His father, K.L. << /Length 5 0 R /Filter /FlateDecode >> Malvinder and Shivinder Singh were arrested by the Delhi Police's Economic Offenses Wing Thursday evening. The Singh brothers' downfall drove a wedge between them. While significant, these allegations against Malvinder and Shivinder Singh are just the tip of the iceberg. The other drain, Religare Capital Markets, reported losses worth Rs1,628 crore between 2011 and 2016 (the last reported). Starved of cash, businesses went into a tailspin. So why did the Singhs let it go this bad, this fast? The Singhs lost control and stepped down from both the firms in February 2018. It also downgraded the holding company, RHC Holding, to default. In late 2018, Shivinder Singh sued Malvinder, accusing him of mismanagement and of basically being responsible for the downfall of the brothers' businesses. The matter is reserved for judgement. But l'affaire Dhillon-Singh leaves several unanswered questions: Were the brothers consumed by naivete in not just handing over a substantial chunk of their wealth to the Dhillon family and RSSB associates but also in giving Godhwani a free hand? 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They sold it. Once the proceeds of the Ranbaxy sale were received, the Singh brothers paid nearly Rs2,000 crore in taxes and previous loan repayments. "We would now like to fight for our Justice and Prideand not for economics only," say the brothers in their response. In the first, being the head of the sect and a father figure to Singh brothers, Dhillon had an upper hand; in the second, equal partners Malvinder and Shivinder were led by Malvinder; in the third, Godhwani, being backed by the Dhillons, pretty much ran Religare independently. Godmen and spiritual societies are part of the lives of India's super rich The reception and adminstration get edgy as soon as Dhillons and Singhs are enquired about. The bond was to strengthen further as Godhwani's daughter Simran was engaged to Dhillon's younger son Gurkirat. 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Lending arm Religare Finvest also reported a net loss of Rs350 crore in 2016/17 while its debt shot up from Rs1,695 crore in 2008 to Rs17,218 crore in 2016. Investment and routing of funds is a major bone of contention now and may be a precursor to a possible legal battle in the near future. Legitimate business people may not want to come to India.. He strategised to make Religare a global financial powerhouse as the firm expanded rapidly into lending (Religare Finvest), capital markets (Religare Securities), wealth management (Religare Wealth Management), asset management, insurance, housing finance as well as commodities. Dhillon-better known as 'Babaji' or the 'Saint of Beas' is the spiritual guru of the Radha Soami Satsang Beas (RSSB). Serious Frauds Investigation Office and Sebi are probing alleged financial irregularities under Singh brothers, including the charge that the promoters allegedly transferred Rs473 crore from the company without approvals. This opacity makes for risk, said Arun Kumar, an economist with the New Delhi-based Institute of Social Sciences. Well, Malvinder and Shivinder are under arrest. xX# }UTR=dlXyd2lRlF`*IER!7UV}O7z|fOT;5Dx>Umj[{?f7o1PhFygZRWw\?+ajyXVS&LmZ)L>Yk"cTIRJ$06;qQ\fqX0Z>.dU d]e(=,htKe`n:B$DcC!AWWe~GXJa,wa8l/p hHk;2|:O1bmlC_6c^rP=Db8)ZnE1QCZ6F%Mgn`;jWjcaB?r7k6U- k.{{,zzM6_Aq 7T$l(T1 8p \t (RSSB) Gurinder Singh Dhillon and his family members approached the Delhi high court on Friday saying they do not owe any money to RHC Holdings Pvt Ltd, promoted by Malvinder and Shivinder Singh. The Dhillon family would eventually become Religares second-largest shareholder, after the Singhs, with money lent to them by the brothers, according to people familiar with the matter. In 2017 Fortis tried to buy back the assets of Singapore's RHT Trust which are located in India for Rs4,750 crore but met with opposition. In an arbitration tribunal in Singapore, its new owner, Daiichi Sankyo, accused the Singhs of concealing the extent of its regulatory problems during the sale. London: The wife of head of Radha Soami Satsang Beas (RSSB) sect passed away in the United Kingdom on Wednesday. By India Today Web Desk: Brothers Malvinder and Shivinder Singh, once successful businessmen who were on Forbes' list of billionaires, are now staring at the prospect of spending at least the next few days in jail. f X |NA~0'(%?<==$Wp+={Pzs-4;#G7wk-VCM"s9%8!@Nm/p~yy-$JG34U_4fCi D dq36QEFi@v;v")a;NF. The Ranbaxy brothers -- Malvinder and Shivinder Singh -- systematically and deliberately siphoned off huge sums, estimated at Rs 10,000 crore. This was followed by three years of profits and then another Rs123 crore loss in 2016/17. Naivete is surely not one of their virtues. By 2012/13, Fortis had gone ahead of Apollo Hospitals as India's largest hospital chain by revenue (though Apollo reclaimed its top rank right after). By that time, Dhillon was playing a big role in the Singhs finances. What is known is that the Dhillon family used the money to invest in real estate. As they scrambled to pay off debts, the Singh brothers' resolution efforts were blocked multiple times by Daiichi Sankyo through court-led interventions to ensure the brothers had enough assets to pay off the $500 million arbitration order it had won against them. For the Singhs other lenders, Daiichi Sankyo, or law enforcement seeking penalties, recovering this money from the Singh empire may depend on the terms of arcane debt securities, which arent public and can be changed with the consent of both parties. The New Delhi property boom Dhillons family companies invested in has since gone bust. By 2010, another business opportunity emerged. It was fine as long as it was all within the family. Religare Enterprises had revenues of Rs896 crore, net profit of Rs91 crore and a market cap of Rs2,819 crore at the time of the Ranbaxy deal. One of the sore points between the Singhs and Godhwani was Godhwani's failed commitment to the Singhs to secure a bank licence. Their repeated actions have negatively impacted Indian banks, all our shareholders and employees. As they moved to settle their dues by selling assets in group companies, Daiichi Sankyo moved court to protect its interest by securing several injunctions preventing them from divesting their assets or equity. The brothers acknowledge having financial ties to Dhillon, and in written comments said they are in dialogue with the Dhillon family and its companies to address the money owed to them. But the brothers story is a cautionary tale to anyone doing business in India, offering a window into the opaque corporate structures common in the family dynasties that dominate Indian commerce. THE HEAD of Radha Soami Satsang Beas, Gurinder Singh Dhillon, has, for the first time, admitted to financial transactions between himself and ex-Religare Enterprises (REL) promoters Malvinder and Shivinder Singh. The brothers had hit gold with the sale of their Ranbaxy sale, earning close to Rs 10,000 crore. Ligare reported net losses of Rs590 crore between 2008 and 2014, the last reported results. Prius Real Estate, Prius Commercial Projects, Best Healthcare, Modland Wears, Fern Healthcare, Addon Realty, Hillgrow Infrastructure, Bestest Developers, Platinum Infrastructure. Updated Date: It had also urged the court to attach their assets, which may be used to recover the award. The case reached Indian courts, with the Supreme Court threatening to jail the brothers if they don't pay the tribunal award. RHC says he was president there between 2016 and 2017. Justice J R Midha sought the response of RHC Holding, Singh brothers and Daiichi on the plea of Dhillons. He was in Spain working before coming back to India to accept his nomination as the next spiritual head of RSSB in 1990. Its home to 8,000 devotees of the Master: Gurinder Singh Dhillon. A part of the rights issue was funded by RHC and the Singh brothers, who Radha Soami sect head admits to financial deals with Ranbaxy . The objective was to eliminate the annual licence fees. The Indian Express on the man and his sect Written by Manraj Grewal Sharma , Prabha Raghavan The court directed them to file affidavits on their dealings with Malvinder, RHC Holdings, Oscar Investments Ltd and related companies within two weeks. They took their fathers place in Delhi high society among other old business families, becoming patrons of Indian artists and socializing at exclusive clubs. Even if Religare's boom and bust cycle may be blamed on its then managing director & CEO Sunil Godhwani, what about Fortis, which was under direct executive management and control of the Singh brothers? Many call him a God in human form. As many as 500,000 devotees sometimes visit the ashram at once to listen to his teachings of how meditation, vegetarianism and high moral values can help one escape the cycle of death and rebirth. And, this is where things took a turn for the bad. The Singh brothers were close to Dhillon, who, in fact, is their maternal uncle. Khanna's close business association with the Singh brothers through Ranbaxy also overlapped with his own deep-rooted belief in the teachings of the Radha Soami sect. Shiv Dayal Singh was influenced by the teachings of Tulsi Sahib, who taught Surat Shabd Yog (which is defined by . .more View 2 Comments on this Story Agritech sector seeks tax sops, cheaper credit With both Religare and Fortis slipping out of their hands, the brothers are believed to be operating out of one of the group's oldest offices at Hanuman Road while another office at Marina Building is readied. Since then, it has reported losses of Rs34 crore, Rs40 crore and Rs75 crore in the following three years. The Master can advise but he cannot make a choice for you, he added.Representatives for the spiritual group said the Master has no role in its administration or finances. A further sum of Rs 35 crore was taken out by his sons as loans for personal purposes, but was subsequently returned in 2011, Dhillon claimed in his affidavit. Copyright 2023 Living Media India Limited. She was 57. stream Funds were then disbursed to other companies controlled by the Dhillons. Daiichi-Ranbaxy case: Delhi Police summons Radha Soami Satsang chief Gurinder Singh Dhillon Gurinder Singh Dhillon is among 55 individuals and entities ordered by the Delhi High Court to. the head of the Radha Soami Satsang. His group, the Radha Soami Satsang Beas, says it has more than 4 million followers worldwide. Most of the money was used to buy real estate Riches. The court, in its September order, said the amount which 55 garnishees, including Dhillon family, owe to RHC Holdings should be deposited with the Registrar General of the Delhi High Court within 30 days. ", The 55 garnishee parties also include RSSB's associate companies, former. Copyright 2023 Outlook Publishing India Pvt. Still, Dhillon hails from a family of major landowners in Punjab, and was himself a businessman in Spain prior to his ascension at the spiritual group. A few months later, Malvinder sued Shivinder, accusing him of being part of a conspiracy to divert funds. Of this, Rs 6 crore was loaned to Gurpreet and Gurkirat by RHC. Of that, Rs834 crore was due to write-offs arising out of losses from advances, goodwill and inter-corporate deposits and other provisions. Theyve also lost the family mansion. The brothers had disclosed their assets to the court in sealed covers in December 2016 and March 2017 during the pendency of Daiichi's plea seeking enforcement of the 2016 arbitral award passed by a Singapore tribunal against them. It was too massive a blow to the financials of a company whose total revenue is still in the sub-Rs1,000 crore region. Download The Economic Times News App to get Daily Market Updates & Live Business News. Godhwani was the financial head and adviser of RSSB. Since debt remained unpaid and the value of the pledged shares dropped due to build-up of losses at Fortis and Religare, the lenders invoked hypothecation. Malvinder himself moved to Singapore to manage international operations. 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