Through Express news service

NEW DELHI: The Securities Appellate Tribunal (SAT) has dismissed the appeal of Shivinder Mohan Singh, former promoter of Fortis Healthcare, against the order of market regulator Sebi asking Religare Enterprises and Religare Finvest to recall the loans.

The Securities and Exchange Board of India (Sebi), through an interim order in March 2019, had asked Religare Enterprises and Religare Finvest to take action to recall loans worth Rs 2,065 crore granted to Singh and several other entities.

Funds were misappropriated from Religare Finvest’s books for the use of promoters and entities of the promoter group of Religare Enterprises, in accordance with the Interim Order. Management intervened after the regulator received complaints alleging financial mismanagement and embezzlement at Religare Finvest, a subsidiary of Religare Enterprises.

Singh’s lawyer had challenged a confirmatory order that was made in September 2019. Following Sebi’s confirmatory order, Singh approached the SAT. Rejecting his plea, SAT said Singh was an administrator and
promoter in both companies when the alleged embezzlement took place.

Further, the court said that Singh’s claim that he had nothing to do with embezzlement could not be accepted in principle at this point. “We are not inclined to interfere with the disputed orders at this late stage.

The appeal fails and is dismissed with a direction that the WTM (full-time member) will decide the case within six months from the date the appellant (Singh) files their objection / response to the notice. of justification, ”the court said in an order passed Dec. 24.