UPL slumps on buzz of whistleblower allegations

Shares of the agrochemicals maker tumbled 14.18% to Rs 422.50 after a whistleblower reportedly alleged that the promoters of UPL had siphoned off money.

According to the media report, the whistleblower alleged 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. The whistleblower also claimed that shell entities were used to carry out other illegal transactions, reports added.

UPL CEO Jai Shroff clarified to the media today that news report with reference to 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," he was quoted by the media as saying.

UPL is a global provider of sustainable agriculture products & solutions. The company posted a 166% jump in consolidated net profit to Rs 537 crore in Q2 September 2020 from Rs 202 crore in Q2 September 2019. Consolidated revenue from operations came at Rs 8,939 crore in Q2 September 2020, 14.35% higher than Rs 7,817 crore in the same quarter last year.

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