Fortis Healthcare clarifies no role in Daiichi-Singh Brothers dispute, calls itself 'complete stranger'

It further clarified that after the Singh Brothers’ shareholding fell below 1% and they resigned from the Board by March 2018, institutional shareholders appointed a group of independent directors. In June 2018, this newly constituted Board, supported by investment bankers and legal advisors, began a competitive bidding process to bring in a new investor.

Subsequently, Northern TK Venture, part of the IHH Healthcare Berhad group, invested via a fresh equity issue after securing all required approvals from CCI, SEBI, stock exchanges, and shareholders. The investment was finalised in November 2018, months after the Singh Brothers had ceased any association with the company, and did not involve any transfer of shares from them.

Fortis reiterated its commitment to corporate governance, transparency, and regulatory compliance, noting its focus on operations and stakeholder interests following its turnaround since 2018 under the new promoter.

The Supreme Court, on 25 September, declined to intervene in a Delhi High Court order directing a forensic audit of Fortis Healthcare Ltd. The audit stems from Daiichi Sankyo’s effort to enforce a ₹ 3,500 crore arbitral award against the former promoters, Malvinder and Shivinder Mohan Singh.

The Supreme Court bench, led by Chief Justice Surya Kant, said the Delhi High Court’s observations were prima facie and tentative, and stressed that the forensic auditor must act independently without being influenced by the High Court’s views.

The Delhi High Court had appointed the forensic auditor in August to investigate transactions involving the Singh Brothers and Fortis Healthcare Ltd, particularly concerning the alleged dissipation of shares. The audit aims to trace the flow of assets to determine if they could have been used to satisfy the decree in favour of Daiichi Sankyo.

Fortis maintained that the court’s direction does not impose any monetary liability on the company, which was not a party to the original dispute nor a judgment debtor. The appointment of the auditor is solely for a factual inquiry into events surrounding the shareholding dissipation by the erstwhile promoters.

The court also highlighted a significant decline in Fortis Healthcare’s shareholding held through Fortis Healthcare Holdings Private Limited (FHHPL), which was controlled by the Singh Brothers.

On the stock front, Fortis Healthcare’s share price closed 4.71% lower on Friday at ₹ 836 per share on the NSE. Market analyst Mahesh M Ojha of Kantilal Chhaganlal Securities noted that sentiment has turned negative due to the ongoing legal overhang, which could keep investors cautious and exert downside pressure on the stock.

He added that the stock may face resistance in the ₹ 870–898 zone, with further upside dependent on sustained movement above this range. On the downside, levels of ₹ 820, ₹ 800, and ₹ 770 could be seen if weakness persists, with short-position traders advised to consider a stop-loss at ₹ 872 and targets at ₹ 820, ₹ 800, and ₹ 770.