Aurobindo Pharma, the pharmaceutical firm stated on Thursday that their promoter Sarath Chandra Reddy’s arrests was in no way related to the company or its subsidiaries’ operations.
“Further to the disclosure of even date, Company further learnt that the arrest of Mr. P. Sarath Chandra Reddy, Whole Time Director / Promoter Group of the Company is not in any way connected with the operations of Aurobindo Pharma Limited or its subsidiaries,” the pharma company said in exchange filing.
The statement by Aurobindo Pharma comes mere days after Reddy was arrested by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA) for his alleged involvement in the Delhi liquor policy scam.
Reddy, also Whole Time’s director was allegedly involved along with Pernod Ricard General Manager Benoy Babu in a conspiracy amounting to the tune of Rs 100 crore. Reddy allegedly gave the money indirectly to Vijay Nair, another accused in the scam.
Following the arrest of Reddy, shares of Aurobindo Pharma crashed 11.56 per cent on Thursday.
“He is a graduate of Business Administration. He is a second generation entrepreneur and belongs to the promoter group. He has gained experience in general management and expertise in project executions,” reads Sarath Chandra Reddy’s profile on Aurobindo website.
The Hyderabad-headquartered company is yet to react to the arrest of one of its directors. He is said to be director of 12 companies of Aurobindo Group.
Sarath Chandra Reddy is also the director of Trident Life Sciences. The Central Bureau of Investigation (CBI) included Trident Life Sciences as the fifth accused in the case.
The ED had reportedly questioned Sarath Chandra Reddy in connection with the money laundering allegations in Delhi on September 21, 22 and 23.
Sarath Reddy is the second businessman from Hyderabad arrested in the case.
