Religare Finvest fund diversion case: SEBI slaps Rs 21 crore fine on 52 entities including Fortis Healthcare Holdings

They have been asked to pay the fine within 45 days, according to an order passed by the Securities and Exchange Board of India (Sebi) on Monday.

The case involves a complex web of transactions whereby the funds of listed company Religare Enterprises Limited (REL) were diverted through its subsidiary Religare Finvest Ltd (RFL) for the ultimate benefit of the erstwhile promoters -- RHC Holding, Malvinder Mohan Singh, and Shivinder Mohan Singh. Funds were also misutilised for repayment of earlier loans taken from RFL.

"The whole scheme of fraud led to diversion of funds of Rs 2473.66 crore out of a material subsidiary of REL and also mis-utilisation of funds of Rs 487.92 crores of RFL," Sebi said in its 390-page order.

Read also: Three senior officials of Fortis along with Religare Finvest pay 4.3 Cr to settle a case with SEBI

Such a huge diversion and misutilisation of funds of RFL in which REL held 85.64 percent stake and which contributed 57 percent of the consolidated revenue of RFL as on March 31, 2018 definitely abuses the assets of a listed company, and in turn, also affects the investors, it added.

Medical Dialogues Team had earlier reported that Economic Offence Wing of Delhi Police had arrested former Managing Director and Chief Executive Officer of Religare Enterprise Limited (REL) Sunil Godhwani for his alleged involvement in a forgery case amounting to Rs 757 crores.