Bank loan default: Malvinder Singh restrained from selling properties

The Delhi Debts Recovery Tribunal (DRT) has restrained former CEO of Ranbaxy Laboratories and the co-owner of Fortis Healthcare, Malvinder Mohan Singh, from selling a posh property in Lutyen's Delhi and some other assets in a bank loan default case.

A bench headed by presiding officer GVK Raju passed the interim direction on an application by Yes Bank seeking recovery of Rs 5.6 billion loan given to Oscar Investment Ltd. for which Singh was a guarantor.

"In the facts and circumstances of the case, defendants, their men or agents are restrained from alienating or creating any sort of encumbrance in respect of the immovable property, i.e., 1, Rajesh Pilot Marg, until further orders," the court said, while also restraining him from selling some of his other assets including properties.
 

The bank had filed an application through its law officer, advocate Navin Trivedi, claiming that the defaulters, "with an intention to defeat its rights, are trying to alienate the movable and immovable property and if they are permitted to do so, the bank would suffer irreparable loss."

The tribunal also directed Singh to file an affidavit disclosing his movable and immovable assets.