Sun Pharmaceutical Industries Limited received an order passed by Regional Director, North Western Region, Ministry of Corporate Affairs. Interim order passed in the matter of application of compounding of offences under Section 441 for alleged offences under Section 177 of the Companies Act, 2013. A penalty of INR 960,000 is imposed on the Company and its directors as follows: Sun Pharmaceutical Industries Limited: INR 480,000, Mr. Dilip Shanghvi: INR 120,000, Mr. Sailesh Desai: INR 120,000, Mr. Sudhir Valia: INR 120,000, Mr. K. Subramanian: INR 120,000.
Date of receipt of direction or order, including any ad-interim or interim orders or any other communication from the authority: August 30, 2024. Details of the violation(s)/contravention(s) Committed or alleged to be committed: This matter pertains to the earlier investigation carried out by SEBI, in which a Settlement was reached with SEBI in February 2021 without admission or denial of guilt; however, on the same matter, the Ministry of Corporate Affairs also initiated an investigation in parallel in 2019. Interim order in the application for compounding of offences for alleged violation under Section 177 for failure to take approval of the Audit Committee for a related party transaction with Aditya Medisales Limited for the financial years 2014-15 to 2017-18.
For the subsequent period, the related party transactions with Aditya Medisales Limited were duly approved by the Audit Committee and, based on its recommendation, approved by the shareholders with a 92.9% majority.
