Whistleblower alleged that UPL entered into rent bargains with a shell corporation owned by its workers, and paid crores of rupees in rent for the properties held by the latter.
Agrochemicals firm UPL Ltd share price tag plunged practically 11 per cent today, just after a whistleblower claimed that the corporation promoters have been siphoning off funds. UPL shares opened at Rs 479, which was Rs 13.3, or 2.5% reduced than the preceding day’s closing price tag. Further, via the day, the shares fell to the low of Rs 416.05, just before closing at Rs 438.45 at Bombay Stock Exchange (BSE). The whistleblower, who is a board member of the listed agrochemical corporation, alleged that UPL entered into rent bargains with a shell corporation owned by its workers, and paid crores of rupees in rent for the properties held by the latter, stated a news report in the Economic Times.
However, denying the claim, UPL CEO Jaidev Shroff stated that the whistleblower’s complaint was place to rest in 2017 only. Further, Shroff stated that the matter was completely disclosed, when the audit committee at that time had provided a clean chit to the corporation. While speaking at an interview with ET Now, Shroff added that the audit committee reviewed the complaint and concluded that every thing was fine.
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In a separate interview to CNBC-TV18, Jaidev Shroff stated that the complaint was produced by his estranged wife, about the residence that he lives in. He underlined that the rental agreement is cancelled and the residence is no longer rented to UPL.
Meanwhile, UPL reported a turnover of Rs 3,162 crore and a net profit of Rs 104 crore in the second quarter of the present economic year. However, its operating margin fell from 18.9 per cent in Q1 to 13.06 per cent in Q2. The industry capitalisation of the corporation stands at Rs 33,517 crore, as on today. After the acquisition of Arysta LifeScience, UPL has reportedly turn into the fifth biggest agrochemical corporation in the globe.