Malvinder Mohan Singh, the former co-promoter of Religare Enterprises (REL), was arrested by the Economic Offences Wing (EOW) of the Delhi police late on October 10 after a lookout notice against him had been issued earlier in the day, reports CNN-News18.
Singh is accused of causing wrongful loss of Rs 2,397 crore to Religare Finvest (RFL). A senior official from the Delhi police confirmed to the channel that the accused had been arrested in Punjab and was being moved to Delhi.
Four others, including Sunil Godhwani and Shivinder Singh, were arrested earlier in the same case. Godhwani is Managing Director of Religare Enterprises, whereas Singh was former Chairman in the company. He is also Malvinder Mohan Singh’s younger brother.
In August, in connection with a money-laundering case, the Enforcement Directorate (ED) raided the premises linked to the Singh brothers.
Religare Finvest filed a complaint of misappropriation of funds and fraud against the Singh brothers in December 2018. Earlier in May, they were charged with the same and with cheating.
The brothers are also accused of diverting funds. It is alleged that Shivinder Singh had taken loans from the company and invested the funds in various other companies.
EOW said in a statement that the accused, who had ‘absolute control’ of Religare Enterprises and its subsidiaries, were responsible for distributing loans from Religare Finvest to companies that did not have any financial standing. They also controlled the said companies, the statement added.
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