On August 31, the Delhi High Court allowed a forensic audit into the IHH acquisition of Fortis. The company has sought a stay on the forensic audit, claiming that the High Court has “unjustly stigmatised a revived company, its public shareholders and its investors”.
Fortis, in its plea before the Supreme Court, said it is a publicly listed company with 2.5 lakh shareholders and was not a party to the arbitration between Daiichi and erstwhile promoters Malvinder Singh and Shivinder Singh.
Daiichi is seeking enforcement of its arbitral award against the Singh brothers.
Fortis said the listed company is not answerable for the personal debt of its erstwhile promoters and that there is no evidence to show that it aided or abetted the Singh brothers.
Prior to IHH’s takeover, Fortis operated the hospitals under an asset-light model, while the hospitals were owned by Singapore-based RHT Health Trust. Money infused by IHH was subsequently used to buy out the trust.
Fortis described IHH as an unconnected investor that came as a “knight in shining armour” for the company. It also said the Singh brothers exited Fortis nine months before IHH’s investments.The matter is linked to Daiichi’s efforts to enforce its arbitral award against the erstwhile promoters of Fortis.
Fortis shares fell 2% on August 31 after the Delhi High Court directed a forensic audit of the IHH investment and the acquisition of RHT Health Trust.
