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Court extends police custody of Malvinder and Shivinder Singh in Religare fraud case

A district court in Delhi extended the police custody of businessmen Malvinder and Shivinder Singh by two days in connection with fund diversion and misappropriation of funds pegged at about Rs 2,400 crore. The court will hear the case on October 17.

Claiming that they have found the “money trail” to some extent and wanted the custody be extended, the Economic Offences Wing (EOW) of the Delhi police filed a remand application in which it claimed that “during the police investigation the accused persons disclosed that the amount to the tune of Rs 1000 crore approximately was transferred from entities linked to corporate loan book”. ET has seen the copy. These entities are Modland Wears Pvt Ltd, Devara Developers Pvt Ltd, Fern Healthcare Pvt Ltd, Best Healthcare Pvt Ltd, Adept Lifespaces Pvt Ltd, Rosestar Marketing Pvt Ltd,” the application said.

“The amount has been transferred to various persons which has been transferred from the complainant company to these shell entities and finally the said amount was misappropriated/siphoned,” it further goes on to say.

The EOW said that they wanted the custody to be extended to “identify the persons to whom the amount was disbursed and to ascertain the purpose of giving the said amount”.

While the police custody has been extended for Singhs along with former REL chairman and managing director Sunil Godhwani, ex-Religare Finvest Ltd (RFL). Former CEO Kavi Arora and former REL CFO Anil Saxena were sent to judicial custody.

All five were arrested last week following a complaint by Religare Finvest Ltd. They were produced in a court in Saket on Tuesday afternoon.

The EOW has alleged that the accused “wilfully defaulted in repayments and caused wrongful loss to RFL to the tune of Rs 2,397 crore,” in its application filed in the court on 11 October. It also said that the funds were diverted to promoter related companies.

The police investigative agency sought extension of judicial remand for “sustained interrogation,” to find the trail of “cheated money” to ascertain the purpose of cheating, to confront the directors of shell entities and to ascertain the role of co-conspirators.

Malvinder Singh’s lawyer Manu Sharma said he was happy to note that the investigative agencies are heading in a right direction. He has been saying that the investigative agency should recover the money from the head Radha Soami Satsang Beas, Gurinder Singh Dhillon.

According to the FIR filed by the EOW, internal inquiries showed that the poor condition of the complainant company was to a large extent on account of wilful defaults on significant unsecured loans, defined for internal purposes as CLBs by borrower entities either related, controlled or associated with the promoters.
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