INSUBCONTINENT EXCLUSIVE:
The sell-off came after a financial advocacy website, which claimed to be in possession of a whistle-blower letter against company, shared
with subsidiary Aditya Medisales (AML), a few institutional investors who claimed to have accessed document told ET
It has also made allegations of money laundering and lending by AML to Suraksha Realty, a company promoted by Sun Pharma director Sudhir
Valia, they said.
Sun Pharma denied having received any new whistle-blower complaint and said certain media houses had launched a mala fide
campaign by making unsubstantiated allegations against company.
ET brings a low down on Sun Pharma subsidiary that is in middle of
controversy: AML is a pharma distribution company whose directors are Ajay Dinesh Mehta, Pramanand Shivgunde and Darshna Devang Mehta.
The
company is classified as a promoter shareholder of Sun Pharma
turnover for FY18 was just over Rs 8,000 crore.
The arrangement with AML, Sun Pharma said, had been in existence for years
But transactions with AML were not reported as related-party because, Sun Pharma said, it was not required to be classified as one prior to
arrangement with Sun Pharma was unique because, typically in a pharma business, distributor is a third party, who buys stock from
manufacturer and sells it to retailers over a margin fee
In this case, Sun Pharma did not have to deal with a third-party distributor, if AML is considered as a related party.
Among concerns that
investors had raised last month were a loan of Rs 425 crore given by Sun Pharma to employees and others and transactions with AML.
On
Sun Pharma has yet to make any changes to shareholding and AML continues to be classified as a promoter entity.
AML subsidiaries, according
to public records, are Asawari Property and Prudent Natural Product.
