Dabur India shares crashed after reports said Pradip Burman is among the individuals who are under investigation for stashing black money abroad.
According to the latest shareholding pattern of Dabur, Pradip Burman, who is part of the promoter group, controls just 0.02 per cent stake in the company.
According to media reports, other individuals in the list are Pankaj Lodhiya, a bullion trader, and Radha Timblo, director of Goa-based company Timblo Pvt Ltd.
The Dabur stock slumped 9 per cent to Rs 196.40 on the BSE in morning trade soon after some TV channels flashed the news. On the NSE, it tumbled 8.94 per cent to Rs 196.55.
However, later the stock recovered some of the lost ground but was still trading 4 per cent lower at Rs 207.10 on the BSE at 1.40 pm.
The German Government had provided details of Indians who have accounts in Liechtenstein Bank earlier this year under the double taxation avoidance agreement.
However, Finance Minister Arun Jaitley has maintained that revealing names until investigation was complete would violate bilateral treaty conditions.
Dabur clarifies
Commenting on the latest development, a spokesperson of Dabur said that the Burman family is committed to the highest standards of corporate governance, and encourage ethical behaviour at all levels. "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. Therefore, it is unfortunate that every person having a foreign bank account is being painted with the same brush,” he said.