Aurobindo Pharma shares tank over 11% after ED arrests director Sarath Reddy

Shares of Aurobindo Pharma on November 10 declined 11.56 percent to close at Rs 479 apiece on BSE after Enforcement Directorate (ED) arrested its director Sarath Reddy in the ongoing Delhi liquor scam earlier today.

The pharma company’s scrip had recorded an intra-day low of Rs 464.50 apiece, down 14 percent from its previous close, on stock exchanges after the arrests were made.

Aurobindo makes a range of medicines from antibacterials to antidepressants.

Apart from Reddy, Benoy Babu of Pernod Ricard has been arrested under sections of the Prevention of Money Laundering Act (PMLA).

Aurobindo Pharma confirmed the news of the arrest in an exchange filing, adding, “the Company is in the process of ascertaining further details and will do further disclosures as appropriate.”

ED had earlier conducted raids at the premises of both the arrested accused.

Both the accused were taken for medical examination at Ram Manhor Lohia hospital and they will be produced at Rouse Avenue court in Delhi at 1 PM.

The federal agency has also questioned Delhi Deputy Chief Minister Manish Sisodia and his personal assistant earlier in connection with the case.

The money laundering case stems from a CBI FIR that had named Sisodia as an accused among others. The CBI had raided the premises of the deputy chief minister and some Delhi government bureaucrats after filing the case.

In September, the agency arrested Sameer Mahandru, managing director of a liquor manufacturing company named Indospirit.

Delhi’s Excise Policy 2021-22 came under the scanner after the Delhi LG recommended a CBI probe into the alleged irregularities in the implementation of the scheme.