Fortis says it is ‘complete stranger’ to Daiichi-Singh dispute after SC clears audit

Fortis Healthcare said on 27 September it is a 'complete stranger' to the legal dispute between Daiichi Sankyo and the Singh Brothers, after the Supreme Court on 25 September cleared the way for a forensic audit of the company. The Supreme Court disposed of Fortis's petition against a Delhi High Court order directing the audit, clarifying that the High Court's observations were only tentative and that the audit must be conducted independently. Fortis, in a stock exchange filing, said it had no control over the transfer of shares by its erstwhile promoters and did not receive any money from the sale of their shareholding.

The dispute stems from Daiichi Sankyo's efforts to enforce a Rs 3,500 crore arbitral award against former Fortis promoters Malvinder and Shivinder Singh. The Delhi High Court had appointed a forensic auditor in August to trace transactions involving the Singh brothers and Fortis related to the alleged dissipation of shares. Fortis emphasised that the High Court did not impose any monetary liability on the company, and it is confident the independent audit will confirm its position. The company also noted that its current promoter, Northern TK Venture, part of the IHH Healthcare Berhad group, invested through a fresh issue of shares in November 2018, after the Singh brothers had left the board.

On 30 September, IHH announced it will fully cooperate with the forensic audit and plans to raise its stake in Fortis to 51% over three to five years, expanding capacity to 10,000 beds by 2031.