Shares of KRBL, one of leading basmati rice producer, has declined nearly 20 per cent in intraday on Bombay Stock Exchange (BSE) on Monday after its joint managing director Anoop Kumar Gupta was arrested in VVIP choppers case. The Enforcement Directorate (ED) arrested Gupta in connection with a money laundering probe into the over Rs 3,600-crore VVIP choppers purchase scam case.
Reacting to the news, KRBL shares declined as much as 19.51 per cent to hit an intraday low of Rs 191 after bearish opening at Rs 201.05 against previous closing price of Rs 237.30. Paring some of early losses, the stock settled day's trade at Rs 202.60, down 14.62 per cent. In contrast, the BSE SENSEX surged 2,314 points or 5 per cent to close at 48,600.
On the volume front, there was surge in selling as 3.97 lakh shares changed hands over the counter as compared to two-week average volume of 0.24 lakh shares. The market capital (m-cap) of the company slumped to Rs 4,769 crore.
As per PTI report, Gupta, the joint managing director of KRBL that sells India Gate basmati rice, has been sent to five-day custody of the central probe agency after he was produced before a special court for cases under the Prevention of Money Laundering Act (PMLA). Gupta was arrested in the AgustaWestland VVIP choppers deal case and alleged he was not cooperating in the ongoing probe, the news agency said, quoting ED sources.
Meanwhile, KRBL, in an exchange filing, said that neither the company nor Gupta has anything to do with the AugustaWestland case. KRBL Limited or Gupta was neither named in the charge-sheet/complaints nor has he been arrayed as an accused in the case.
"Gupta was detained for further investigation into the affairs of Rawasi Al Khaleej General Trading (RAKGT) LLC, Dubai, where KRBL Limited had indirect minority shareholding. The transactions in question happened after 31 March 2009 when, KRBL Limited had already transferred its entire indirect shareholding in RAKGT. All transactions between KRBL Limited and RAKGT after 31 March 2009 pertained to sale of rice. Such transactions were duly made through the proper banking channel and were disclosed in compliance with the law," 'it said.
The company said that it is confident that the matter will be resolved and they will take appropriate legal action in due course. It assured its stakeholders that the company's operations are being carried out smoothly and will continue to be carried out in such a manner.