Shares in Dabur India closed lower on Monday after the central government revealed that Pradip Burman has allegedly parked untaxed or black money in illicit foreign accounts. Mr Burman, a member of the promoter family of Dabur India, holds no position in the company currently.
According to the company's filing on the Bombay Stock Exchange, Pradip Burman held 0.02 per cent share in Dabur India as of September 30, 2014. (Read)
Dabur is India's fourth largest FMCG company with interests in hair care, oral care, skin care, health care and food products. (Track stock)
Reacting to the development, a Dabur spokesperson said, "We wish to state that this account was opened when he was an NRI, and was legally allowed to open this account. We have followed all the laws and the complete details regarding the account have been voluntarily, and as per law, filed with the Income Tax Department, and appropriate taxes paid, wherever applicable." (Read)
Dabur shares, which had fallen as much as 9 per cent to a low of Rs 196.40 in intra-day trade, ended down 3.6 per cent at Rs 208 on the BSE. The stock underperformed the FMCG sub-index on the BSE, which declined just 1.06 per cent. (Track stock)
Pradip Burman's name, part of the affidavit that contained two other names, was submitted by the Centre before the Supreme Court today. The other names are Radha Timblo, connected to a Goa-based mining company, and Rajkot-based businessman Pankaj Chimanlal Lodhiya. (Read the full story)
The Supreme Court, based on a petition by senior lawyer Ram Jethmalani, had set up a committee to look at how to recover crores parked by tax-evaders in foreign accounts.