Former Ranbaxy promoters Malvinder and Shivinder Singh will challenge the order of a Singapore tribunal imposing a ₹2,562-crore ($400 million) fine on them for concealing information from Japan’s Daiichi Sankyo while selling their majority stake in the Indian drugmaker in 2008.
The fine was imposed on the billionaire siblings earlier this week following an arbitration in Singapore on a case filed by Daiichi Sankyo in 2013. The Singh family had sold Ranbaxy to Daiichi for over $4 billion.
A statement on behalf of the family said : “….the Arbitration Tribunal has issued an award, where the law governing the dispute was Indian Law, by a majority of 2:1 in favour of the Claimant (with Justice AM Ahmadi, former Chief Justice of India, giving a dissenting opinion dismissing all claims of the Claimant) for damages of an amount of ₹2,562.78 crore (approx..)…”
When the family sold its stake to Daiichi, some plants were under the regulatory scanner of the United States Food and Drug Administration. The relationship turned sour as details emerged on the extent of the problems.
Daiichi eventually had to fork out $500 million to settle criminal and fraud charges against it in the US market. Four of the plants are banned from making and selling products in the US.
In 2013, foreign media reports quoted Daiichi officials as saying “certain former shareholders of Ranbaxy concealed and misrepresented critical information” on the US Department of Justice and FDA probes.
Malvinder Singh currently heads Fortis Healthcare, while Shivinder has stepped down from all executive functions and joined a spiritual organisation.
Daiichi has since sold Ranbaxy to Sun Pharmaceuticals.