Fortis Healthcare on Wednesday said it has initiated legal action to recover about Rs 500 crore of funds allegedly taken out of the company by its founders Malvinder and Shivinder Singh after an external investigation found “systemic lapses and override of controls” in the loan given.
The loans were given to its founders without board approval and enough collaterals, it added.
The firm, which is embroiled in a takeover battle, also annulled September 2016 appointment of former executive chairman Malvinder Singh as ‘lead:Strategic Initiatives' and will seek to recover payments made to him in that role as well as any company asset in his possession.