They had sold their entire stake of about 35 per cent in Ranbaxy for $2.4 billion in 2008 to Daiichi Sankyo.
The Singh brothers and family, erstwhile promoters of Ranbaxy Laboratories, have been asked to pay damages of Rs 2,562.78 crore to Daiichi by an arbitration tribunal here for concealing and misrepresenting information during their stake sell to the Japanese firm.
Malvinder Singh, currently the Chairman of Fortis Healthcare Chain, and family including his brother Shivinder Singh, had earlier sold their entire stake of about 35 per cent in Ranbaxy for $2.4 billion in 2008 to Daiichi Sankyo.
However, in the year 2013, the Japanese pharmaceutical major had filed an arbitration petition in Singapore accusing the Indian promoters of concealment and misrepresentation of facts after Ranbaxy paid $500 million to the US Department of Justice as settlement for misrepresenting facts.
The arbitration tribunal has now issued an award by a majority of 2:1 in favour of the claimant for damages of an amount of Rs 2562.78 crore, RHC Holding Pvt Ltd said in a statement.
The damage amount to be paid include “quantified interest, costs and expenses of the arbitration till the date of award and interest on this until date of payment, against all the respondents jointly and severally”.
Commenting on its future Legal course of action, RHC Holding said: “The company is exploring further legal options available to challenge the majority award.”
It, however, declined to share the details stating “all the parties to the arbitration are bound by the confidentiality obligations as a part of the arbitration proceedings.”
When contacted Malvinder Singh declined to comment on it.
After buying out the erstwhile promoters shares, Daiichi spent a total of around Rs 22,000 crore to gain the majority stake in Ranbaxy. Later on, the Japanese firm exited the Ranbaxy following a $4.2 billion merger deal between Sun Pharma and Ranbaxy.
Last April 2015, Daiichi Sankyo sold its entire stake of around 9 per cent in Sun Pharmaceutical Industries for about Rs 20,420 crore, which it had received after merger of Ranbaxy in the Indian firm, ending its about seven years of tumultuous experience in the country.