RFL scam: Malvinder sent to judicial custody

A Delhi court Thursday sent former Fortis Healthcare promoter Malvinder Singh and a co-accused to 2-week judicial custody in a money laundering case related to alleged misappropriation of funds at Religare Finvest Ltd (RFL).

Besides Malvinder, the court remanded Sunil Godhwani, former CMD of Religare Enterprises Ltd (REL), to the judicial custody till December 12.

Additional Sessions Judge Sandeep Yadav passed the order after the accused were produced before the court on expiry of their custodial interrogation.

The accused were sent to Tihar central jail on applications moved by ED's special public prosecutor Nitesh Rana, seeking 14-day judicial custody for them.

"Application/accused is remanded to judicial custody till December 12," the court said.

The court directed the Tihar jail Superintendent to consider, strictly in accordance with Jail Manual, two applications filed by Singh seeking special diet on the ground that he had various ailments particularly stomach infection and for providing hot bathing water during winter, saying that he was suffering from a severe chest infection.

The Delhi High Court Wednesday allowed custodial interrogation of Singh and Godhwani by the ED to confront them with some documents and witnesses in the case.

The high court passed the order on ED's plea challenging the trial court's order refusing to extend their custodial interrogation remand.

The probe agency had taken both into custody on November 14 from Tihar jail, where they had been lodged in a case filed by the Delhi Police in relation to the alleged scam.

Advocate A R Aditya, also representing the ED, said that Singh and Godhwani have been accused of laundering money, punishable under Sections 3 and 4 of the Prevention of Money Laundering Act.

RFL is a group firm of REL, which was earlier promoted by Malvinder and his brother Shivinder Singh brothers.

Earlier, Singh and Godhwani were in judicial custody along with Malvinder's brother Shivinder and two others -- Kavi Arora and Anil Saxena -- in a case filed by the Economic Offences Wing (EOW) of Delhi Police.

The ED alleged that both the brothers, along with others, transferred an amount of about Rs 1,000 crore to various persons from entities linked to the corporate loan book and finally, the money was siphoned off.

The agency started its investigation in the matter on the basis of a case lodged by the Delhi Police.

Malvinder (46), Shivinder (44), Godhwani (58), Arora (48) and Saxena were arrested by EOW for allegedly diverting the money and investing in other companies.

The EOW registered an FIR in March after it received a complaint from RFL's Manpreet Suri against Shivinder, Godhwani and others, alleging that loans were taken by them while managing the firm but the money was invested in other companies.

"They put RFL in a poor financial condition by disbursing loans to companies with no financial standing and controlled by them. The companies to which the loans were disbursed willfully defaulted in repayments and caused a loss to RFL to the tune of Rs 2,397 crore," the police had alleged.