New Delhi, April 15 (IANS) The Economic Offences Wing (EoW) of the Delhi Police has filed a chargesheet against Malvinder Singh and Shivinder Singh along with some employees of Lakshmi Vilas Bank in a Rs 791 crore fraud case.
People in the know of the developments said that the EOW has completed its probe in the criminal case and filed a chargesheet on March 23, 2020 in the court of the Chief Metropolitan Magistrate at Saket District Court. The magistrate will take cognizance of the chargesheet once the court reopens.
Religare Finvest Ltd (RFL) had filed a complaint against few individuals who were directors on the Lakshmi Vilas Bank board and certain employees involved in the transactions along with individuals who were directors and officials of the Shivinder and Malvinder-owned RHC Holdings and Ranchem for alleged breach of trust, cheating and misappropriation of funds.
Both Malvinder Singh and Shivinder Singh earlier owned Religare Enterprises, the parent company of Religare Finvest Ltd.
“The EOW filed an FIR bearing no. 189 of 2019 in the case on September 23, 2019. And the EoW filed the chargesheet before the Chief Metropolitan Magistrate, Saket District Court, on March 23, 2020,” sources said.
Religare Finvest filed an FIR with the EoW last year, alleging that Lakshmi Vilas Bank had liquidated four fixed deposits amounting to Rs 791 crore, out of which Rs 750 crore was the principal amount, to adjust for loans which were given to RHC Holdings and its subsidiary, Ranchem, owned by the Singh brothers.
These FDs were created by RFL for short-term tenor with the intention of keeping them free from all and any encumbrance. No documentation was executed by RFL for creation of security and no communication was ever sent to LVB that the FDs were to act as security for any loans taken by RFL or any other company owned and/or controlled by it.
The Delhi High Court, which has been hearing a separate civil recovery suit filed by RFL, had fixed April 15, 2020 as the date when it would hear all pending applications. This has now been extended further.