The Delhi High Court has directed a forensic audit into transactions involving Fortis Healthcare, IHH Healthcare, and RHT Health Trust. This move stems from a long-running legal battle by Daiichi Sankyo to recover funds from the company's former promoters. Investors are monitoring the situation to see how this probe into past financial decisions might affect the company, despite its recent strong operational growth.
The Delhi High Court has issued an order for a comprehensive forensic audit covering transactions between Fortis Healthcare, the Malaysia-based IHH Healthcare, and Singapore’s RHT Health Trust. This judicial decision marks a significant development in the long-standing legal battle initiated by Japanese pharmaceutical firm Daiichi Sankyo against the former promoters of Fortis, Malvinder and Shivinder Singh.
The audit aims to investigate whether assets were diverted or managed in a way that violated previous court orders, particularly regarding the events surrounding the Singh brothers' departure from the company. The scope of this investigation includes the 2018 acquisition of a 31% stake in Fortis by IHH Healthcare, a deal valued at approximately Rs 4,000 crore. Additionally, the court is seeking clarity on an alleged transfer of Rs 4,666 crore to RHT Singapore, which has been a point of contention in the ongoing recovery proceedings for the $4.6-billion arbitration award.
For investors, this development brings a familiar legal overhang back into focus. While the current management team at Fortis has been focusing on operational expansion and strengthening the business, the forensic audit is a reminder of the complex financial history that preceded the current ownership structure. In its recent performance update for the first quarter of the 2027 financial year, Fortis reported a consolidated revenue of Rs 2,545 crore and a profit after tax of Rs 273 crore, reflecting steady growth in its healthcare services and ongoing efforts to expand bed capacity.
The forensic audit is a follow-up to guidelines previously issued by the Supreme Court in September 2022, which asked the High Court to examine whether the financial maneuvers made by the former promoters were legitimate. The court is also looking into the role of various financial institutions that provided loans or handled share pledges during that period to determine if any transactions were carried out in breach of restrictions.
As the forensic process begins, the primary risk for investors is the potential for prolonged uncertainty. While the audit itself is a fact-finding exercise regarding past transactions, any findings that suggest financial irregularities could impact market sentiment or trigger further regulatory scrutiny. Investors may want to track the timeline of this audit and any formal responses from the company or the financial institutions involved. The core focus for the market will remain on how the company manages this legacy legal matter while continuing its current operational growth trajectory.