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Indiabulls Housing says sorry, pays for Fortis share sale

The ruling came in response to a petition filed by Daiichi that is chasing $500 million.

, ET Bureau|
Last Updated: Dec 19, 2019, 09.39 AM IST
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The Supreme Court has closed contempt proceedings against the eight directors of Indiabulls Housing Finance.
Mumbai: Indiabulls Housing Finance and its directors, including chairman Sameer Gehlaut and CEO Gagan Banga, have apologised to the Supreme Court and also deposited Rs 17 crore for selling the pledged shares of erstwhile promoters Malvinder and Shivinder Singh in Fortis Healthcare (FHL).

After this move, the Supreme Court has closed contempt proceedings against the eight directors of Indiabulls Housing Finance.

On November 15, the apex court had prohibited the directors of Indiabulls Housing Finance and Indiabulls Ventures from selling the shares of Fortis Healthcare, holding the directors liable for disobeying court orders. The court ordered that Indiabulls pay up or face contempt proceedings.

In November this year the Supreme Court stalled the takeover of FHL by Malaysia’s IHH, by putting a stay in the open offer for the company. The court had ruled that IHH cannot acquire the remaining 70 per cent stake in the hospital, as doing so can initiate a contempt proceeding against the current board of Fortis. The court also held that Singh brothers were liable to face contempt proceedings, and it directed them to deposit Rs 3,000 crore.

The ruling came in response to a petition filed by Daiichi that is chasing $500 million due to it in an arbitration it had filed against the former promoters of Fortis hospital. The next hearing in this case is expected on February 3.
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