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Religare Enterprises takes 5% hit after HC lawsuit

NEW DELHI: Stock of Religare Enterprises today took a knock ..

NEW DELHI: Stock of Religare Enterprises today took a knock of over 5 per cent after a New York-based investor filed a lawsuit in the Delhi High Court accusing billionaire Singh brothers of diversion, siphoning off and digression of assets.

According to RBI investigation of the company's fiscal 2016 books filed as part of the 700-page suit in November, the company made 21 loans to a number of seemingly independent companies that routed at least $300 million back to privately-held Singh firms on the same day, Bloomberg reported.

The stock reacted, declining 4.98 per cent to hit a low of Rs 44.80 on the BSE. The stock later made up some ground and was trading down 3 per cent at Rs 45.70.

The suit, seen this month by Bloomberg News, alleges that the Singhs diverted the lender's funds to aid them with a personal debt load of about $1.6 billion, which is forcing the sale of chunks of their empire that includes Religare and Fortis Healthcare. A hearing in the case is scheduled for March 20, Bloomberg reported.

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