India’s Aurobindo Pharma says director arrested by Enforcement Directorate, Health News, ET HealthWorld

India's Aurobindo Pharma says director arrested by Enforcement Directorate

Bengaluru: India’s Aurobindo Pharma Ltd learnt its director P. Sarath Chandra Reddy had been arrested by the country’s federal financial crime agency, the drugmaker said in an exchange filing on Thursday.

Several media reports also said French spirits giant Pernod Ricard’s Benoy Babu, an executive at its India business, was also arrested by the Enforcement Directorate (ED) under sections of the Prevention of Money Laundering Act (PMLA).

Pernod Ricard did not immediately respond to a Reuters request for comment, while Aurobindo did not respond to an email seeking details on the arrest.

Shares in Aurobindo, which makes a range of medicines from antibacterials to antidepressants, were down 6 per cent after the news.

Reddy, a business administration graduate, belongs to the promoter group of the company, which has manufacturing plants in the United States, Brazil and Portugal, according to its website.

Several media reports said Reddy and Babu were arrested in connection with the ED’s money laundering probe into the alleged irregularities in the now-scrapped liquor policy of the Delhi government.

The ED last month raided several liquor companies, suppliers and distributors in a money laundering investigation that the Aam Aadmi Party, ruling the country’s capital, has criticised as politically motivated, according to media reports.

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