The Directorate of Enforcement, New Delhi, has attached 96 acres of land belonging to Aurobindo Pharma in a case where charge sheet was filed by CBI in the Court of Principal Special Judge for CBI Cases, Hyderabad.
In a statement to Bombay Stock Exchange on February 21, Aurobindo Pharma noted that the barren vacant land situated at Kota Bhogapuram Village, Vizianagaram District of Andhra Pradesh was belonging to APL Research Centre, a 100% subsidiary having no operations and a fixed deposit of Rs 3 crore of the company. These are equivalent to the value (Rs. 12.90 crore) of the alleged benefits mentioned in the charge sheet.
The release from the company further noted that it has contested the matter before the Adjudicating Authority under the Prevention of Money Laundering Act, 2002. The Adjudicating Authority vide Order dated February 15, 2013 has confirmed the Attachment. The company has full regards for Law and the legal process and that it is in the process of appealing the decision before the Appellate Tribunal. The Company maintains that there has been no wrong doing on its part and hope that the truth will prevail.
The share price of Aurobindo Pharma has dropped by about Rs 10 during the day from day's opening of Rs 185. This attachment order does not have any material implications on the current and future business operations of the company, the release noted.
It may be recalled that in March last year, Aurobindo Pharma, Managing Director, Mr K Nityananda Reddy has been named in the charge sheet filed by CBI against YS Jagan Mohan Reddy and 12 others in an alleged disproportionate assets case.