Religare fraud: Delhi court extends police custody of Singh brothers, Godhwani

A Delhi court on Tuesday extended the police custody of Fortis Healthcare's former promoters Malvinder Singh and his brother Shivinder Singh by two days. Shivinder Singh and Godhwani were arrested on October 10, while Malvinder Singh was arrested on October 11 over alleged misappropriation of Religare Finvest Ltd (RFL)'s funds and causing losses of Rs 2,397 crore. The court also extended the police custody of Sunil Godhwani.

Chief Metropolitan Magistrate Deepak Sherawat extended the custodial interrogation of the accused after the probe agency said that new material had emerged in the case.

The Economic Offences Wing (EOW) of Delhi Police said that during the course of investigation the Singh brothers and Godhwani disclosed that around Rs 1,000 crore were transferred to various persons from the entities linked to the corporate loan book. The amount was siphoned off. The entities that received and eventually transferred the amount to various persons include Modland Wars Pvt Lt, Devera Developers Pvt Ltd, Fern Healthcare Pvt Ltd, Best Healthcare Pvt Ltd, Adept Lifespaces Pvt Ltd and Rosestar Marketing Pvt Ltd.

The EOW asked for the custody of the accused to ascertain the purpose of transfer, the purpose of creating the shell companies, to confront the directors of these shell entities as well as to look into their association with the accused. The Delhi Police EOW sought the custody also to ascertain the trail of money and the role of co-conspirators.

Malvinder Singh, Shivinder Singh and Sunil Godhwani will be produced at the court on October 17.

Other officials, Kavi Arora and Anil Saxena, were also sent to a two-day judicial custody. Malvinder's lawyer told the court that they are not opposing the plea and are ready to assist the probe.

Also read: Former Religare promoter Shivinder Singh, CMD Sunil Godhwani among 4 arrested by EOW, Delhi Police

Also read: After Shivinder and Godhwani, now EOW arrests Malvinder Singh in Ludhiana