UPL shares slump on fund-diversion charge; firm denies allegations

The stock closed at Rs 438 a share, down 10.94 per cent, with a market capitalisation of Rs 33,499 crore

Shares of chemical firm UPL Ltd closed nearly 11 per cent down on Thursday on reports that a whistle-blower had alleged corporate governance lapses in the company and that its promoters had siphoned off funds. The whistle-blower also alleged that UPL entered into rent deals with a shell company owned by its employees and paid crores of rupees in rent for properties held by the latter, which was earlier owned by the promoter family.

The company, owned by the Shroff family, however, said this was an old matter and was reported to the audit committee in 2017. After an independent