'Systemic lapses' found in inter-corporate borrowings: Fortis Healthcare

Stock Market - Fortis Healthcare today said "systemic lapses" were found in certain inter-corporate deposits (ICDs) given by its arm Fortis Hospitals Ltd that were used by borrowers for granting or repaying loans to certain additional entities whose directors are connected to its erstwhile promoters, the Singh brothers.

The company, which had initiated an independent investigation through an external legal firm in February this year, also said it has made provisions totalling around Rs 580 crore in the fourth quarter of FY18 pertaining to the ICDs and other loans, among others, but the "recoverability is doubtful".

The findings of the investigations have been submitted to the Securities and Exchange Board of India (SEBI) and Serious Fraud Investigation Office (SFIO). The company has initiated legal action for recovery of these outstanding ICDs and other advances, Fortis Healthcare said in a statement.

The board of directors of the company discussed the investigation report during their two-day meeting, which ended early this morning.

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