Supreme Court allows forensic audit in Fortis case
The Supreme Court of India has upheld a Delhi High Court order for a forensic audit into the dissipation of Fortis Healthcare shares. The audit aims to determine if share transfers were legitimate business transactions or fraudulent attempts to avoid a multi-billion rupee foreign decree.
Why it matters
The case highlights the complexities of enforcing foreign legal decrees in India and the scrutiny of corporate governance in the healthcare sector.
NEW DELHI: The Supreme Court on Tuesday upheld a Delhi HC order directing forensic audit of dissipation of shares of Fortis Healthcare Ltd (FHL) and Fortis Healthcare Holdings Pvt Ltd (FHHPL) through 17 banks and financial institutions allegedly to frustrate execution of a decade-old Rs 5,300 crore foreign decree by Daiichi Sankyo against brothers Malvinder and Shivinder Singh.Brushing aside a challenge to the forensic audit order of the HC by senior advocate Shyam Divan, appearing on behalf of Yes Bank and Axis Bank, a bench of CJI Surya Kant and Justices Joymalya Bagchi and V Mohana clarified the forensic audit would not be a roving inquiry against the banks or FIIs but will focus on the transaction of shares of FHL and FHHPL.The bench also chided Daiichi for giving up its plea for forensic audit of the dissipation of shares in the two companies, which was a major window for…
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