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“The first generation builds the business, the second makes it a success and the third wreck it” or as one may say, “The third generation curse”. This pscho-social phenomenon gives the best and the worst to a family. Issues like poor succession planning, lack of trusted advisors, family feuds, varied visions and lack of foresightedness in children are some of the reasons downgrading the riches to rags. The failure of Ranbaxy brothers is never missed out while having a word about the challenge of the third generation. The Billionaires were slapped by heavy debts arising out of the money laundering frauds that eventually landed them in jails.
A brief history about the pharmaceuticals tycoons; Ranbaxy was originally started by the grandfather Bhai Mohan further led by his son Parvinder Singh and thereafter acquired despite of hues and cries, by grandsons Malvinder Singh and Shivender Singh. Well, there are more characters in this narrative including the spiritual guru of Radha Soami Satsang Beas, Gurinder Singh Dhillion and a close ally Sunil Godhwani. It’s nothing less than a drama, in fact, the story is beyond a plain explanation.
Back in the year 2006, the Singh brothers were all involved in expanding their business overseas, cracking deals in US, Europe, Asia and Latin America became like an every month affair. In a battle to attain the maximum power, secret dubious deals were entered and the products were sold on not-so-authentic scientific data. Post investigations, fingers were pointed out at the duo and the US market went out of hands. In 2008, the Singhs sold off their ancestral company to the Japanese global player, Daiichii Sankyo at $2 billion, in addition to shares amounting to a total of Rs 9,575 crores. It was a perfect way out, or well they thought so. The money was converted to cash, Fortis Hospitals and Religare Enterprises hit up the towns and the rest of money went to the Babaji beside real estate investments.
Suspicious much? Selling off ages old empire legibly at such prices is not so common, is it? Even the Japanese thought so and thus, post deep investigations, Daiichii realized it was cheated. And yes, the brothers accepted concealing thousands of crores amidst the deal in 2013 and were fined $500 million for the same. In April 2016, a Singapore Arbitration Tribunal directed the brothers to pay Rs. 3500 crores to Daiichii owing to concealment of critical information. The curse became stronger when the High Court upheld the Arbitral Award in 2018 and their appeal was dismissed by the Supreme Court.
Now, Daiichii is seeking execution for the award. In a recent video-conference hearing by Justice Rekha Palli, the brothers were directed to pay the award amount and for that, assets needed to be attached. In this regard, the Hon’ble Court heard Daichii’s application to attach and sell rights vested in the Fortis and Religare trademarks for recovery of part dues through a court commissioner.
Furthermore, the Court has directed the former promoters of Fortis and Religare to maintain status quo in trademarks till 28 July, 2020. Since the brothers are under police custody in jail, the Court authorized the Tihar Jail’s respective superintendent to allow and assist a video-conferencing between the lawyers and the brothers, so that a response on the execution application is sought.