Fortis CEO Informs That Company Is Exploring Legal Options To Recover Dues From Its Erstwhile Executive Chairman

Fortis Healthcare is working on legal options to recover dues from its erstwhile executive chairman Malvinder Singh, according to the company’s present Chief Executive Officer Ashutosh Raghuvanshi.

Incidentally, Malvinder was paid more compensation than the law allowed, he stated.

Earlier, the company’s auditor had stated that Malvinder Singh was paid Rs 20 crore, which is more than what is allowed as per the Companies Act.

The auditor had hinted about “uncertainty” in recovering the amount.

In this connection, it may be recalled that the government has mandated that without the central government’s permission, no board member can be paid more than 11% of a company’s net profits.

The auditing committee had referred to an internal report on inter-corporate deposits which was submitted earlier. The committee had stated that there was a related party transaction on the issuance inter-corporate deposits (ICDs) worth Rs 414-crore.

However, Malvinder Singh has denied asking the management to sign the ICD agreement.

Former directors did not disclose compliances on related parties. The report had stated that more related party transactions could not be ruled out.