Fraudsters Used Fake Documents to Sell SMS Pharma Shares Worth Rs 3.31 Crore, Probe On
New Delhi: Hyderabad-based SMS Pharmaceuticals Limited has approached the Central Crime Station (CCS), alleging that a group of individuals fraudulently siphoned off shares worth more than Rs 3.3 crore by impersonating shareholders and claiming unpaid dividends using forged documents.
According to a complaint filed by the company's Secretary, Thirumalesh Tumma, the alleged fraud came to light after a genuine shareholder raised a competing claim for an unpaid dividend that had already been processed. The company subsequently discovered multiple suspicious transactions involving old physical share certificates.
As per the complaint, the accused allegedly targeted shareholders who continued to hold physical share certificates issued in 1994 and had not dematerialised them even after the company's listing on the BSE and NSE in 2007.
The company alleged that the fraudsters exploited information on unclaimed dividends available on its website, as required under the Companies Act. They allegedly submitted requests to update shareholder addresses and later sought duplicate share certificates by claiming that the original certificates had been lost.
According to the complaint, forged identity documents, including PAN cards with altered photographs and signatures, were allegedly used to obtain duplicate share certificates. The shares were then transferred to associates of the accused, dematerialised and subsequently sold through stock exchanges.
The complaint identifies seven alleged instances of fraud involving around 85,000 shares. Based on NSE prices as of April 28, 2026, the value of the affected shares exceeded Rs 3.31 crore. In two cases, the company reportedly managed to stop the transfer process after receiving rival claims from genuine shareholders.
Following the complaint, the CCS registered a case on May 30 against K Varu Dinesh and others under various provisions of the Indian Penal Code, including cheating, impersonation, forgery, use of forged documents and criminal conspiracy.
"We are collecting details as part of the preliminary probe and based on the findings, appropriate legal action will be initiated," a CCS official told Times of India.
Investigators are currently examining the alleged misuse of duplicate share certificate procedures, forged documents and share-transfer records to determine the full extent of the fraud and identify all individuals involved.
