Aurobindo Pharma to contest ED order

Written by fe Bureau | Hyderabad | Updated: Feb 22 2013, 10:40am hrs
Aurobindo Pharma has decided to contest the Enforcement Directorate (ED) order attaching some of its immovable properties pertaining to the disproportionate assets case of YSR Congress president YS Jagan Mohan Reddy.

Confirming that the company was in receipt of EDs order, the company said on Thursday that the attachment will not have any material implications on its current and future business operations. Shares of Aurobindo Pharma dropped 3.72%, closing at R179.90.

In the matter of charge sheet filed by CBI in the court of the principal special judge for CBI Cases, Hyderabad, the Enforcement Directorate vide the provisional attachment order dated October 04, 2012, attached 96 acres of barren vacant land situated at Kota Bhogapuram Village, Vizianagaram district, belonging to APL Research Centre, a 100% subsidiary having no operations and a fixed deposit of R3 crore of the company.

The company has contested the matter before the adjudicating authority under the Prevention of Money Laundering Act, 2002. The company has full regards for law and the legal process and that it is in the process of appealing the decision before the Appellate Tribunal. The company maintains that there has been no wrong doing on its part and hope that the truth will prevail, it said in a statement on Thursday.

The ED decided to take possession of properties worth R122 crore in connection with its money laundering probe against Reddy and his associates. The Adjudicating Authority of the Prevention of Money Laundering Act (PMLA) approved two separate attachment orders valued at R51 crore and R71 crore of the agency, paving way for their immediate seizure by the ED.