The whistleblower alleges that UPL entered into rent deals with the shell company owned by its employees and paid crores of rupees in rent for properties held by the latter, which was earlier owned by UPL chief Jaidev Shroff himself.
UPL shares declined over 13 percent intraday on December 10 after reports made rounds that a whistleblower has accused promoters if siphoning funds.
The whistleblower alleges that UPL entered into rent deals with the shell company owned by its employees and paid crores in rent for properties held by the latter, which was earlier owned by UPL chief Jaidev Shroff himself, Economic Times reported.
Moneycontrol could not independently verify the news.
According to the details submitted by the whistle blower, there seem to be certain corporate governance issues with regards to transactions done by promoters of UPL.
The stock was trading at Rs 425.25, down Rs 67.05, or 13.62 percent at 10:59 hours. It has touched an intraday high of Rs 479.90 and an intraday low of Rs 416.05.The scrip witnessed a spurt in volume by more than 7.67 times and was trading with volumes of 2,328,686 shares, compared to its five day average of 366,987 shares, an increase of 534.54 percent.
In an interview to CNBC-TV18, UPL CEO, Jai Shroff, said that the Board has not received any whistleblower complaint. There is access to all information including legal opinion. The company has given all necessary clarifications.
"The report with respect to the whistleblower allegations is completely malicious. Auditors had reviewed transactions between companies that had rented my residence. Rental agreement is cancelled, the house is no more rented to UPL," Shroff said.
"Sadafuli is owned by independent shareholders, not any member of family. This is a systematic, malicious intent to malign the company," he added.
"Business is very strong, UPL has great growth opportunities. There is no fresh complaint that the auditors or management have received. KPMG is our global auditor and it has not resigned," the UPL CEO said.
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