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Former Ranbaxy promoters fined Rs 2,600 crore

May 05, 2016 18:37 IST
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The US arm of Ranbaxy pleaded guilty to seven felonies relating to the manufacture and distribution of certain adulterated drugs

In a major setback to Malvinder Mohan Singh and Shivinder Mohan Singh, the erstwhile promoters of Ranbaxy Laboratories, the Singapore Court of Arbitration slapped a fine of about Rs 2,600 crore ($400 million) for suppressing facts while selling the company to Japanese pharmaceutical company Daiichi Sankyo in 2008, as per a report published in the Economic Times.

The promoters' stake was sold for $2.4 billion. Daiichi, who filed arbitration case in Singapore in 2013, seeks to be compensated for losses it incurred when Ranbaxy was forced to reach a $500-million settlement with the US Department of Justice on charges that the company fudged test results to get approval from the Food and Drug Administration for its medicines.

The US arm of Ranbaxy pleaded guilty to seven felonies relating to the manufacture and distribution of certain adulterated drugs made at units in India and agreed to pay the fine to settle criminal and legal suits.

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