Hyderabad court summons Daiichi, Ranbaxy officials on criminal complaint

A Hyderabad magistrate has issued summons to top officials of Japanese pharma major Daiichi Sankyo and Ranbaxy on a criminal complaint filed by Jayaram Chigurupati, co-founder of the Hyderabad-based Zenotech Laboratories, now part of Ranbaxy . The hearing is scheduled for February 10.

Chigurupati had moved the court alleging that there was a criminal breach of trust by senior officials and directors of Daiichi, claiming they had transferred his confidential information and documents to Ranbaxy during the open offer announced by Daiichi during its acquisition of Ranbaxy. Daiichi Sankyo took over Ranbaxy, then an Indian company owned by Malvinder and Shivinder Singh, in 2008.

Chigurupati approached the court after his complaint in 2010 was "closed" by the Hyderabad police based with the view that it was "civil in nature".

Speaking to Business Today, K. Vivek Reddy, counsel for Chigurupati, said: "The court has rejected the closure report of the Hyderabad police....a prima facie criminal case has been made out against the top management of Daiichi and Ranbaxy. Accordingly, it issued summons to them last month to appear before the court," he said.

A Ranbaxy official, when contacted, said he had no comment to offer.