SEBI orders Religare entities to recall loans worth Rs. 2,315 crore

Asks Singh brothers to disassociate from such companies The Securities and Exchange Board of India (SEBI) has directed Religare Enterprises and Religare Finvest to recall loans totalling Rs. 2,315.090000000 from various entities, including Malvinder Singh and Shivinder Singh. The capital markets regulator has further directed the Singh brothers, among others, to disassociate themselves from the affairs of the Religare entities and also not to dispose any assets or divert any funds till further directions. The order follows a SEBI probe that found that funds amounting to Rs. 2,315.090000000 was diverted from the books of Religare Finvest (RFL) for the utilisation of promoters and promoter group entities of Religare Enterprises (REL). “Further, it is noted that though the funds have moved from RFL to RHC Holding and other promoter related entities... the ultimate beneficiaries of such fund diversion prima facie are Shivinder Mohan Singh and Malvinder Mohan Singh,” stated the order. According to the probe, the funds that were diverted from the books of Religare Finvest included fixed deposits worth Rs. 729.130000000, loans worth Rs. 2500000000 to Bharat Road Network and OSPL Infradeal, another set of loans totalling Rs. 1,260.960000000 and Rs. 750000000 worth of loans to Religare Enterprises group entities. “... it prima facie appears that... entities by indulging in diversion of funds to the tune of Rs. 2315.090000000 [approx.] from RFL, a subsidiary of a listed company [i.e. REL], for the ultimate benefit of the promoters and their related entities,” stated the order.