The enforcement directorate has arrested P Sarath Chandra Reddy with the allegations of giving a 100 crore bribe. This arrest is in relation to the recent Delhi liquor excise case in which the sale of liquor was awarded to private companies.
P Sarath Chandra Reddy was arrested under the prevention of money laundry act 2022. Along with him one more person of company was also arrested. It was alleged that Reddy has relations with other companies who were having licenses for the sale of liquor.
A sharp decline in the share price of the Aurbindo pharma was observed on 10th of November 2022. Shares dropped by 12% the current share price is 464.
Market capital of Aurobindo dropped from Rs. 31,721 crore to Rs. 28011 crore. A total drop of around 3700 crore. Earlier when news of arrest came the company said that it was in process of finding more details about it. Latter when stock prices fell it gave a statement that arrest is not with any connection of any working of company or its subsidiaries.
It is indeed a big shock for other pharma companies and their staff members who know Aurobindo Pharma & respect its growth & work ethics. This liquor scam is really very big & we need to watch how many more person will be found involved in it.
