Aurobindo Pharma’s P Sarath Chandra Reddy acquitted in Delhi Liquor Scam case
Reddy was first arrested by the Enforcement Directorate, as reported by CNBC-TV18 on November 10, 2022. The arrest was made on money laundering charges under sections of the Prevention of the Money Laundering Act (PMLA).
In an exchange filing dated the same day, Aurobindo Pharma had clarified that Sarath Chandra Reddy, designated as whole-time director / promoter group of the company, is not in any way connected with the operations of the company or its subsidiaries. The stock had ended with losses of 12% on that day.
In a separate filing on November 12, 2022, Aurobindo Pharma announced that P Sarath Chandra Reddy has been relieved from his executive responsibilities he was performing due to the temporarily inability to perform executive functions of the company. “However, he will continue to remain as a director on the board of the company,” the filing stated.
According to an Indian Express Report dated March 25, 2024, a Delhi court had allowed Reddy to turn approver in this case and had also granted him a pardon. The ED had alleged that Reddy was engaged in the liquor business, and had conspired with business owners and politicians involved in the excise case, and indulged in unfair market practices to gain undue advantage from the liquor policy, according to the report.
Shares of Aurobindo Pharma are recovering from the lows of the day, currently trading 0.6% higher at ₹1,227.5.
