Professional Documents
Culture Documents
ON
FORTIS HOSPITAL
Presented by
Group no 2
Deepak Patel DM21D34
Samar Ghorai DM21B44
Isha Singh DM21E05
Aditi Tiwari DM21E25
Rahul Kumar DM21D40
Group Presentation
INTRODUTION:
The company was founded by the visionary business leader, Late Dr. parvinder singh the
architect of Ranbaxy Laboratories.
The fortis Group mainly focuses on healthcare which was a major concern in our country
at that time. Its first hospital was established at Mohali.
Their hospitals includes multi speciality as well as super speciality canters providing
comprehensive tertiary and quaternary healthcare to patients across specialities such as
cardiac care, orthopaedics, neurosciences, oncology, renal care, gastroenterology,
mother and child care.
Lack of transparency
Conflicts of interest
Inadequate risk management
Board composition
Weak internal controls
Regulatory and Legal Actions:
1. Securities and Exchange Board of India (SEBI) investigation: SEBI conducted an investigation into Fortis Healthcare and its
promoters for alleged violations of insider trading norms. The investigation found that the promoters had disclosed price-sensitive
information to their relatives and friends, which was used to trade in the company's shares. As a result, SEBI imposed a penalty of
INR 40 million (approximately USD 535,000) on the promoters.
2. Serious Fraud Investigation Office (SFIO) investigation: SFIO conducted an investigation into Fortis Healthcare and its
promoters for alleged financial irregularities. The investigation found that the promoters had siphoned off funds from Fortis
Healthcare to other companies owned by them. As a result, SFIO filed a criminal complaint against the promoters and several
other individuals, including former directors of Fortis Healthcare.
3. Delhi High Court order: The Delhi High Court ordered Fortis Healthcare's former promoters to deposit INR 35 billion
(approximately USD 470 million) as a guarantee for the recovery of funds that were allegedly siphoned off from the company.
The court also ordered the Singh brothers to furnish a list of their assets and bank accounts.
4. Fortis Healthcare's de-listing from stock exchanges: After the fraud came to light, the company's stock price plummeted, and it
faced several lawsuits and regulatory actions. As a result, the company's promoters decided to de-list the company from the stock
exchanges.
5. Settlement with Securities and Exchange Board of India (SEBI): In December 2020, Fortis Healthcare and its former
promoters settled with SEBI over allegations of insider trading. The settlement required the promoters to pay a penalty of INR
26.8 million (approximately USD 360,000) to SEBI.
Conclusion:
The Fortis Hospital fraud case highlights the need for stricter regulations and accountability in the healthcare
industry. It also underscores the importance of patients and their families being vigilant and informed about their
rights and the quality of care they receive.
The case also serves as a reminder of the importance of strong corporate governance, regulatory oversight,
transparency, ethical business practices, and the responsibility of promoters and major shareholders in ensuring
the success and sustainability of companies.