SC Fortis Audit to Focus on Specific Transactions, Not Entire Banking Operations
What Happened
The Supreme Court clarified that the forensic audit ordered in the Fortis Healthcare case is primarily aimed at examining transactions involving Fortis Healthcare Ltd (FHL), Fortis Healthcare Holdings Pvt Ltd (FHHPL), the Singh brothers, and related entities. The court stressed that the audit should not become a “fishing and roving inquiry” into the broader affairs of the 17 banks and financial institutions involved. The banks' role can only be examined in relation to their specific commercial dealings linked to the disputed Fortis share transactions.
Key Takeaways
The ruling allows the forensic audit to continue while placing clear boundaries on its scope. It balances Daiichi Sankyo’s efforts to trace assets linked to its arbitration award with protections against an unrestricted investigation into banks that were not central parties to the dispute.