The Supreme Court on Friday told the former promoters of pharmaceutical company Ranbaxy, Malvinder Mohan Singh and his brother Shivinder Mohan Singh that they could go to jail for disobeying orders to pay dues to Japanese firm Daiichi Sankyo.
“We will go into the issue – why you violated our orders. We will send you to jail. We have given you a chance but you are unable to pay,” the court said.
The apex court was hearing a petition by Daiichi Sankyo which is seeking to recover Rs 3,500 crore awarded to it by a Singapore tribunal in its case against the duo.
Last month, the top court had asked the brothers to furnish details on how they plan to comply with the order passed against them by the Singapore tribunal.
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“You were the flag bearers of the pharmacare industry and it doesn’t look good that you are appearing in court,” the top court had said last month.
It asked the duo to consult their financial and legal advisors and submit the plan by March 28, saying ‘hopefully it will be the last time you are appearing in the court’.
Daiichi had bought Ranbaxy – founded by the two brothers – in 2008. Later, it had moved the Singapore arbitration tribunal alleging that the brothers had concealed information that Ranbaxy was facing a probe by the USFDA and the Department of Justice, while selling its shares.
The Supreme Court will hear a contempt petition against the brothers on April 11.