UPL Slips 15% On Reports Of Whistleblower Claim About Siphoning Of Money

On Thursday, shares of UPL Ltd declined as much as 15% to an intraday low of Rs 416.10 after a news report said that a whistleblower alleged that the promoters have siphoned off money.

An Economic Times report said that a 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 the company's chief executive officer (CEO) Jaidev Shroff himself.

It further said that the details provided by the whistleblower seem to point out certain corporate governance issues with regards to transactions done by promoters of UPL.

In a clarification provided to CNBC-TV18, Shroff said that the company's board had not received any whistleblower complaint. "There was a complaint from my estranged wife in 2016 about the residence that I live in and the matter was put to rest in 2017," he said.

BSE has also sought clarification on the news report from the company. The response is yet to be received.