ET Bureau Dec 14, 2019, 07.32 AM IST
NEW DELHI: Religare Health Trust (RHT) has halted plans to wind itself up after the Supreme Court sought an inquiry into the purchase of assets from the trust by Fortis Healthcare using money from IHH Healthcare. The trust, listed on the Singapore stock exchange, cancelled an extraordinary general meeting (EGM) scheduled for December 3 that was to vote on the closure.
“While RHT is not party to the contempt proceedings at the moment, if RHT were to proceed with the EGM and voluntary winding up vote, there will be risks involved,” it said in a filing to the Singapore stock exchange. “RHT could be seen as doing something that is contrary to the judgment in the Indian courts.”
The Supreme Court had stalled the acquisition of Fortis — originally promoted by Malvinder and Shivinder Singh — by IHH in December 2018. However, Fortis told the court that IHH had already paid Rs 4,600 crore by way of a preferential share allotment in November of that year.
No Word on EGM Date
The court — which is hearing Daiichi Sankyo’s complaint against the Singhs for nonpayment of more than Rs 3,500 crore arbitration award — then stopped any further payments. Last month, the court questioned Fortis for using the Rs 4,600 crore to buy assets from Singapore-based RHT. This had been done in a “hurried and clandestine manner” and is “required to be gone into,” the court had said.
The trust decided to defer a vote, based on legal advice.
“RHT could potentially be brought into the fray, being seen in contempt of the Indian court it said in the filing. “This could end up with RHT incurring additional costs and expenses and potential liability, which would be against the interest of unitholders. In view of all these considerations, the trustee manager has been advised that it would be in the best interests of unitholders to consider adjourning of the EGM.”
RHT didn’t say when it will call another EGM for a vote on the matter.
“The EGM will be adjourned until such later date and time when the trusteemanager is able to make an informed decision as to whether and how the proposed voluntary winding up of RHT may be proceeded with,” it said.
Following last month’s Supreme Court order, Fortis had written to the trustee-manager of RHT on November 25 to “immediately revoke the winding-up process.”