Billionaire Malvinder Mohan Singh and his younger brother Shivinder Mohan Singh, founders of Fortis Healthcare, resigned from the company’s board on Thursday. A late night Bombay Stock Exchange (BSE) filing announced the stepping down of the promoters.
“…we believe this is in the interest of propriety and good governance. It is intended to free the organization from any encumbrances whatsoever that may be linked to the Promoters,” the brothers wrote in their joint resignation letter to the board of directors.
Their resignation from the Fortis board happens days after the Delhi High Court upheld an international arbitration case award of Rs. 3,500 crore to Japanese company Daiichi Sankyo against them.The brothers said they are resigning to ensure the company is insulated from this ongoing legal fight.
The Singh brothers were also the founders of the pharmaceutical company Ranbaxy. They sold their stakes to a Japanese drugmaker for $2.4 billion in 2008. Shivinder Mohan Singh founded Fortis Healthcare with his elder brother Malvinder in late 1990s.