Daiichi arbitration case: Delhi High Court orders attachment of Singh brothers’ declared assets

The Delhi High Court on Friday ordered attachment of all declared assets of Singh brothers in a case related to the enforcement of a foreign arbitration award of Rs 3,500 crore by Japanese drug maker Daiichi Sankyo, according to a CNBC-TV18 report.

The court once again directed the Malvinder Singh and Shivinder Singh referred as Singh brothers to submit list of unencumbered personal assets and directed appointment of chartered accountant for valuation of assets.

The court will resume hearing in the case on May 14.

The court last month in its interim order attached all assets of RHC Holdings and Oscar Investments – the holding companies of Singh brothers that own their assets.

The court also restrained these companies from operating bank accounts, however, it has allowed RHC and Oscar Invests to operate bank accounts for salary and statutory dues.

The court then said each day’s delay costs Singh brothers Rs 50 lakh in interest payments.

In April 2016, an arbitration tribunal in Singapore had ruled in favour of Daiichi, directing the Singh brothers to pay around Rs 2,563 crore in damages, plus interest of 4.44 percent per year from November 7, 2008 till the date of the award.

The tribunal found the brothers guilty of making false claims in a self-assessment report and of fraudulently misrepresenting and concealing the “genesis, nature and severity of the US regulatory investigations” of Ranbaxy when Daiichi bought their 34.82 percent stake for USD 2.4 billion in 2008.moneycontrol

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