Sun Pharma Directors Penalized for Violations

Sun Pharmaceutical Industries Ltd. faces penalties from the Ministry of Corporate Affairs for non-disclosure and lack of approval on related party transactions. Directors, including CMD Dilip Shanghvi, are fined for past violations. The issue relates to investigations by SEBI and the Companies Act, 2013 provisions.

Sun Pharmaceutical Industries Ltd. announced that penalties have been imposed on several of its past and present directors, including CMD Dilip Shanghvi, by the Ministry of Corporate Affairs for non-disclosure and lack of requisite approvals for related party transactions.

The penalties follow an order from the Regional Director, North Western Region, citing alleged violations of the Companies Act, 2013. Notable among those fined are Dilip Shanghvi, Sudhir Valia, Sailesh Desai, and others, with fines ranging from Rs 1.5 lakh to Rs 9.5 lakh each.

This follows a past investigation by SEBI, which was settled without admission of guilt. However, further inquiries initiated by the Ministry of Corporate Affairs in 2019 uncovered additional compliance issues under Sections 129 and 188 regarding financial statements from 2015-2019.

(With inputs from agencies.)