The Securities Appellate Tribunal (SAT) has asked Sebi to pass a fresh order on the fund diversion at Religare Finvest (RFL).

The three-member bench, comprising Justice Tarun Agarwala, C. K. G. Nair and Justice M. T. Joshi, on Wednesday asked Sebi’s wholetime member to pass a fresh order “if they so desire” after giving an opportunity of hearing to Religare Finvest. It also directed RFL to maintain its assets worth Rs 200 crore for a period of three months beginning Wednesday.

The SAT also ruled that if the wholetime member was unable to pass the order within the period, the limited restraint order which has been passed will come to an end.

The order comes after an appeal filed by RFL against an interim order passed by the capital market watchdog in October 2018 as well as against the confirmatory ruling of Sebi in March 2019. RFL is a subsidiary of the Religare Enterprises (REL). Shivinder and Malvinder Singh were the promoters of REL.

Malvinder Singh (Wikimedia Commons)

The issue pertains to the affairs of Fortis Healthcare Ltd, which were being managed by the erstwhile promoters. It was alleged that the Singh brothers siphoned off funds of Fortis Healthcare to promoter related entities through layers of companies controlled by them.

In October 2018, Sebi had directed Fortis Healthcare to recover Rs 403 crore, along with interest, from RFL and other entities. Besides, RFL and other entities were restrained from disposing of their assets pending investigation.