Sun Pharma, executives settle 'fund diversion' case with SEBI

Mumbai, Feb 12 Sun Pharmaceutical Industries Ltd (SPIL) and its executives, including its MD Dilip Shanghvi, have settled a case with capital market regulator SEBI over alleged fund diversion by the company and its subsidiary Sun Pharmaceutical Laboratories Ltd (SPPL) through Aditya Medisales Ltd (AML), its sole distributor in India.

Whistle blower complaints alleged that transactions with AML were ongoing for several years, but it was disclosed as a related party of SPIL only in FY 2017-18.

The pharma major has paid a settlement amount of over Rs 56.11 lakh, while Shanghvi has paid Rs 62.35 lakh to SEBI, said separate orders of the regulator in the matter.

In view of the whistle blower complaints, a forensic audit was conducted in the matter followed by investigation.

SEBI observed during the investigation that AML was a related party of Sun Pharmaceutical even before the scheme of amalgamation.

"However, the relevant compliance(s) pertaining to related parties, as required under the following provisions of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, were not made by SPIL (with respect to AML)," it said.

In May last year, the entities proposed to the SEBI to settle the instant proceedings, without admitting or denying the findings of fact and conclusions of law, through a settlement order and filed settlement application.