It's a fascinating soap opera, how billionaire nephews of guru Gurinder Singh are entangled with the Indian spiritual organization that he heads -- Radha Soami Satsang Beas (RSSB).
Gurinder Singh's family earned about $250 million from shares of Religare Enterprises they paid about $3 million for, as I described in "Radha Soami Satsang Beas' guru makes $254 million."
Those shares came from Malvinder Singh, who is the guru's nephew. Malvinder's brother is Shivinder Singh. They formed Religare after selling their stake in Ranbaxy Laboratories to Japan’s Daaichi Sankyo Company.
A few years ago, Guru Gurinder Singh's son became CEO of Religare Health Trust, a wholly owned subsidiary of Religare Enterprises. As I said in this post, "Religare is a company that Malvinder and Shivinder Singh invested heavily in after selling their stake in Ranbaxy, a pharmaceutical company. So the money gifted to the guru and his family is rooted in previous Ranbaxy holdings."
Which gets us to a story in the Economic Times that was emailed to me recently.
It describes how Malvinder and Shivinder Singh, the guru's nephews, have been fined $400 million for concealing and misrepresenting facts about Ranbaxy from the eventual purchaser of that company, Daaichi.
Former Ranbaxy promoters Malvinder and Shivinder Mohan Singh fined Rs 2,600 cr for hiding facts from Daiichi
By Arun Kumar, ET Bureau|
5 May, 2016, 03.16PM IST
Daiichi had filed the arbitration case in 2013 in Singapore and had accused the Indian promoters of concealment and misrepresented facts.
NEW DELHI: Malvinder Mohan Singh and Shivinder Mohan Singh, the erstwhile promoters of Ranbaxy Laboratories suffered a major setback earlier this week when the Singapore Court of Arbitration awarded about Rs 2,600 crore ($400) million fine for concealing and misrepresenting facts from Japanese pharmaceutical company Daiichi Sankyo when they sold the promoters' stake for $2.4 billion in 2008.
Daiichi had filed the arbitration case in 2013 in Singapore. It had accused the Indian promoters of concealment and misrepresented facts. The Japanese company had sought compensation for losses that it was forced to pay the US Department of Justice.
The arbitration order is a major setback on Malvinder Mohan Singh. His Younger brother Shivinder Mohan Singh has already stepped down from the executive role of group companies and had joined the Radha Soami Satsang Beas, a philosophical and spiritual organization that is well-known in Punjab and headquartered near the Amritsar.
Malvinder Mohan Singh could not be reached.
In May 2013, Ranbaxy, under the management control of Daiichi, was forced to reach a $500-million settlement with the US Department of Justice in May accusations that the company faked test results to get approval from the Food and Drug Administration for its medicines.
The US subsidiary of Ranbaxy pleaded guilty to seven felonies relating to the manufacture and distribution of certain adulterated drugs made at units in India and agreed to pay the money to settle criminal and legal suits.
In 2014, Daiichi, that has spent over nearly $4 billion to acquire about 58% stake in Ranbaxy finally decided to exit from the company. In April 2014, it decided to merge Ranbaxy with home grown multinational Sun Pharma. The merger was completed in March 2015.
This story appears to have been replaced on the Economic Times website by an updated story, "Malvinder and Shivinder Mohan Singh to contest arbitration panel order on damages to Daiichi."
NEW DELHI: Malvinder Mohan Singh and Shivinder Mohan Singh will challenge the order of an arbitration panel that asked them to pay Rs 2,562.78 crore in damages to Daiichi Sankyo. In a majority ruling this week, the three member panel in Singapore said the brothers hid key info while selling their controlling stake in Ranbaxy Lab to the Japanese company in 2008.
...The arbitration order is a major setback for Malvinder Mohan Singh. His younger brother, Shivinder Mohan Singh, isn't associated with the family business now and has joined the Radha Soami Satsang Beas, a philosophical and spiritual organisation that is well known in Punjab and is headquartered near Amritsar.
Yes, in 2015 Shivinder Singh announced that he was going to be engaged full-time with Radha Soami Satsang Beas, which I wrote about in "Billionaire Shivinder Singh plans to volunteer for Indian guru." Here's how I ended the post about Singh's stated desire to request seva, or selfless service, at RSSB.
I strongly suspect that Shivinder Singh, like almost all RSSB sevadars, considers that he will be earning good karma and God's/guru's grace through his seva. Otherwise, why wouldn't he do some sort of other volunteer work, given how many unmet needs there are in India that he could help fulfill?
Understand: I'm not criticizing his decision to stop being a businessman and start being a sevadar at RSSB's spiritual community in the Punjab known as the Dera. That's up to him. During my time as a RSSB member, I knew other people who did the same thing -- become full-time volunteers at the Dera.
I'm just saying this: seva is simply volunteer work. It's no different from what countless people do without pay every day all around the world. Giving it a special name doesn't make it special.
I'm pretty sure this isn't the last we've heard from the Singh brothers, or other people involved with the tangled web of relationships between Religare, Ranbaxy, Radha Soami Satsang Beas, the Daiichi lawsuit, and guru Gurinder Singh.
Like I said, its fascinating stuff.