Thanks to those who have shared links to stories in the Indian financial press about new developments in the financial fraud involving Malvinder and Shivinder Singh, along with Gurinder Singh Dhillon, the guru of Radha Soami Satsang Beas, and the guru's close associate Sunil Godhwani.
Here's a Business Today story. They say it's a developing story, so it's short at the moment.
The Enforcement Directorate (ED) Thursday conducted raids at the residences of former Ranbaxy CEO Malvinder Singh and his brother Shivinder Singh. The probe agency carried out the searches in connection with a money-laundering case.
According to ED officials, the raids were conducted after a case was filed under the Prevention of Money Laundering Act (PMLA). The move comes amid the charges of alleged financial irregularities against the Singh brothers and the subsequent downfall of their businesses.
NDTV has a longer story. Excerpts:
Malvinder Singh and his brother Shivinder Singh, ex-promoters of pharmaceutical giant Ranbaxy, were raided today by the Enforcement Directorate in a Rs. 740-crore fraud case.
"Two places were raided in Delhi including Malvinder Singh's home," an official said. The searches were carried out as part of a case filed under the Prevention of Money Laundering Act, the official added.
The brothers have been accused by Religare Finvest of fraud and misappropriation of funds to the tune of Rs. 740 crore.
In December, a criminal complaint was filed by Religare Finvest Limited with the Economic Offence Wing of the Delhi Police against the Singh brothers. A case was filed against the brothers in May.
The Indian Express had a story on a different Singh brothers issue about a week ago. Excerpt below. I've boldfaced the part about the RSSB guru and Godhwani.
Using a web of offshore companies, funds were allegedly diverted from Religare Enterprises Ltd (REL), a company listed in India, into a Jersey firm that was solely owned by Malvinder Singh and Shivinder Singh. REL, which earned consolidated profits of Rs 92 crore on revenues of Rs 748 crore in 2007-08 turned into a loss-making firm in subsequent years with losses mounting to Rs 1,350 crore on revenues of Rs 2,586 crore in 2017-18.
The Singh brothers had a fallout with Sunil Godhwani, who was appointed by the brothers to lead their family office after Ranbaxy sale in addition to his role in Religare (of which he had become the CEO in 2001). Godhwani quit as Chairman and Managing Director of REL in July 2016, and stepped down as whole-time director in September 2017.
Later on, the two brothers fought, blaming each other and Godhwani for fraud. Malvinder alleged that loans were given to Gurinder Singh Dhillon, the spiritual guru of Radha Soami Satsang Beas, to buy real estate.
It seems virtually indisputable that the last sentence is true. Gurinder Singh Dhillon and his family did indeed use allegedly fraudulent loans to buy large amounts of real estate holdings, which later apparently lost value.
Yesterday in a biog post I shared something Dhillon is reported to have said at a talk he gave in Petaluma, California this week.
A woman asked at the end of her questions, "Will you pay for your nephews 5 million" (something like that, I don't have a reference for that and I may not have heard clearly.)
Baba Ji [the guru] said (as I heard it) "I have some money from my parents and have not taken anything else from anyone." Then he said my life is open (or something like that).
That statement from the guru almost certainly is false. Dhillon and his family have taken lots of money from other people. The Indian financial press has written numerous stories containing evidence to support this.