Telangana HC Dismisses Aurobindo Promoters' Plea in Rs 6.53 Crore Insider Trading Case
New Delhi: Aurobindo Pharma has informed stock exchanges that the Telangana High Court has dismissed a writ petition filed by certain promoter and promoter group members of the company in connection with proceedings related to alleged insider trading violations.
According to the company’s regulatory filing, the petition was filed by promoter P V Ramprasad Reddy, along with promoter group members P Suneela Rani, Kambam Prasad Reddy and Trident Chemphar Ltd.
The matter relates to alleged violations of Regulations 3 and 4 read with Regulation 12(2) of the SEBI (Prohibition of Insider Trading) Regulations, 1992. The petitioners had earlier filed a settlement application before the Securities and Exchange Board of India (SEBI) under the SEBI Settlement Regulations, 2018, following which SEBI passed a settlement order on May 6, 2020.
Subsequently, SEBI issued a communication on October 23, 2020 directing the petitioners to deposit alleged profits of Rs 6.53 crore earned from trading in Aurobindo Pharma shares, along with 12 per cent annual interest from the date of violation till the filing of revised settlement terms, into the Investor Protection and Education Fund.
Challenging this communication, the petitioners approached the Telangana High Court seeking to set aside the directive. However, the High Court, through its order dated May 6, 2026, dismissed the writ petition.
According to the company’s regulatory disclosure, the petitioners will now decide their future course of action in consultation with their legal advisors.
Aurobindo Pharma further clarified that since the order is against the promoter group members and not the company itself, there will be no impact on the company’s financials, operations or other business activities.
