The Securities Exchange Board of India (SEBI) has accepted settlements against Sun Pharmaceuticals Limited and its founder Dilip Sanghvi in a case that alleged that Sun was diverting funds through its distributor Aditya Medisales.
The markets regulator has also accepted similar settlements for various amounts against Sanghvi’s brother-in-law Sudhir Valia, Uday Baldota, the current chief executive officer of Sun’s subsidiary Taro Pharmaceuticals, Sun Pharma directors Kalyanasundaram Subramanian and Satish Desai, and other Sun executives Ashok Bhuta and Sunji Ajmera.
Under the markets regulator’s Settlement Regulations, the applicant can apply to settle the case “without admitting or denying the findings of fact and conclusions of law”.
The total settlement runs up to Rs 2.92 crore. Sun Pharma itself is required to pay Rs 56.11 lakh and founder Dilip Sanghvi has to pay the highest amount at Rs 62.35 lakh.
The regulator said a probe was initiated because Sun had failed to make adequate disclosures that Aditya Medisales was a related party in its financial statements. It also did not seek shareholder approval.