New Delhi, May 5 (IANS) The original promoters of home grown pharma major Ranbaxy Laboratories, that has since changed hands twice, have been slapped with a fine of Rs.2,562.78 crore by a Singapore arbitration court for allegedly misrepresenting facts during the stake sale to Daiichi Sankyo.
RHC Holdings, which has as directors industrialist brothers Malvinder Mohan Singh and Shivinder Mohan Singh and figures among the parties that were taken to the arbitration court, said legal opinion was being sought to go on appeal.
“All the parties to the arbitration are bound by confidentiality obligations as part of the arbitration proceedings,” RHC Holdings said in a letter to BSE, adding the disclosure was being made as per the statutory requirements of India’s markets watchdog.
Daiichi Sankyo, which had acquired Ranbaxy from the original promoters in 2008, faced a lot of heat in the US over misrepresentation of manufacturing processes at the Indian plants. In 2014, it decided to sell the Indian company Sun Pharma in a deal valued then at $3.2 billion.
A 35 percent stake in Ranbaxy had been bought by Daiichi for $4.2 billion.
The Singapore court was moved after Daiichi had decided in 2013 to pursue legal options.
“Daiichi Sankyo continues to support Ranbaxy in its efforts to address and correct the conduct of the past which led to the investigations by the US Department of Justice and the US Food and Drug Administration,” the company had said in a statement.
“Daiichi Sankyo believes that certain former shareholders of Ranbaxy concealed and misrepresented critical information concerning US DOJ and US FDA investigations,” the company added and declined further comment.