Business

Singh brothers demand dues write-off in lieu of Fortis brand, says report

Updated : June 27, 2018 10:01 AM IST

Malvinder and Shivinder Singh, the erstwhile promoters of Fortis Healthcare, are trying to extract value out of the Fortis brand to set off dues they owe the company, Business Standard reported on Wednesday.

The Singh brothers, who have been alleged to have diverted funds, claim that the Fortis brand belongs to the founding family and promoter group entities, and it should be valued, the report said citing sources close to the development.

According to the red herring prospectus filed with the Securities and Exchange Board of India in 2013, Fortis has said it does not own the trademarks, including the names and logos, of the Fortis brand, the report said.

The rights to the 'Fortis' name and logo are owned by RHCH-PL, a promoter group company. Fortis uses the name and logo under an exclusive licence for the health care delivery business. The licence fee is Rs 100,000 per year, according to the report.

On Wednesday, Fortis Healthcare reported financial results for the March-quarter following three earlier deferments.

The company, which has reconstituted its board, also said non-executive independent director Rohit Bhasin has tendered his resignation effective June 26. He was appointed in April by the earlier board of Fortis.

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