Delhi police on Friday arrested former Fortis Healthcare promoter Malvinder Singh for allegedly misappropriating funds of Religare Finvest Limited (RFL) and causing losses to the tune of Rs 2,397 crore, officials said.

Malvinder's brother Shivinder Mohan Singh and Sunil Godhwani (58), the former chairman and managing director of Religare Enterprises Limited (REL), Kavi Arora (48) and Anil Saxena, who occupied important positions in Religare Enterprises and Religare Finvest, were also arrested earlier by the Economic Offences Wing for allegedly diverting money and investing in other companies, they said.

Religare Finvest is a subsidiary of the Religare Enterprises. Shivinder and his elder brother Malvinder were earlier the promoters of Religare Enterprises.

The police had said that a lookout circular ad been issued against Malvinder as he was untraceable.

He was detained on the intervening night of Thursday and Friday in Ludhiana and was arrested on Friday morning after he was brought to Delhi by a team of the Economic Offences Wing, additional commissioner of police (EOW) O.P. Mishra said.

The wing registered an FIR in March after it received a complaint from Manpreet Singh Suri of the Reliance Finvest against Shivinder, Godhwani and others alleging that loans were taken by them while managing the firm but the money was invested in other companies.

According to the police, the complainant stated that the four had absolute control on Religare Enterprises and its subsidiaries.

'They put RFL in poor financial condition by disbursing loans to companies having no financial standing and being controlled by them. The companies to which loans were disbursed willfully defaulted in repayments and caused a loss to RFL to the tune of Rs 2,397 crore,' Mishra alleged.