Delhi High Court orders forensic audit in Daiichi-Fortis case

The Delhi High Court has ordered a forensic audit to investigate the alleged dissipation of Fortis Healthcare shares and assets linked to the former promoters, Malvinder Mohan Singh and Shivinder Mohan Singh. The order arises from execution proceedings regarding a $4.6 billion arbitration award won by the Japanese pharmaceutical company Daiichi Sankyo.

S Ramanand Aiyar & Co. has been appointed as the forensic auditor to reconstruct the chain of transactions involving Fortis shares, banks, and financial institutions. The audit aims to determine how assets available to satisfy the arbitral award were reduced and to examine transactions involving Malaysia’s IHH Healthcare Berhad and Singapore’s RHT Health Trust.

Fortis Healthcare Limited issued a statement clarifying that the court’s decision to appoint an auditor does not impose any monetary liability on the company. Fortis noted it was “neither a party to the original dispute nor a judgment debtor in the execution proceedings” and emphasized that the audit is intended to conduct a factual inquiry into the actions of its erstwhile promoters.