Taxman Summons Shantha Biotech Top Brass on Sanofi (France) (SAN.PA) Deal
7/6/2012 7:16:21 AM
Income tax authorities summoned the management of Hyderabad based Shanta Biotechnics in connection with an outstanding tax demand of Rs 1058 crores faced by French drug giant Sanofi Aventis, two people familiar with the development told ET NOW. ET NOW was the first to report the development. In one of the biggest deals in the Indian biotech sector, Sanofi Aventis had in 2009 acquired Merieux Alliance's majority stake in Shantha Biotechnics in a deal that valued the company at nearly Rs 3,783 crore rupees. Merieux Alliance owned 80% in Shantha through its subsidiary ShanH - this stake was acquired by Sanofi's vaccine division, Sanofi Pasteur. " Income tax authorities wrote a letter to the management of Shanta Biotech seeking his personal attendance. A list of documents related to the deal were sought including the latest audited financial statements of Shanta Biotechnics Ltd , details of royalty or management fees payable or paid by Shanta to Sanofi and details of shareholding pattern by Sanofi of the shares of Shanta", said one of the two people cited above. The IT department claim was challenged by Sanofi and the matter is currently pending at the AP High Court. The case is listed for hearing on July 13th.
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