Pharma firm hit by Rs 3 cr shareholder fraud, case booked

Hyderabad: A representative of SMS Pharmaceuticals Limited, Banjara Hills, has approached the central crime station (CCS), alleging that a gang siphoned off more than ₹3 crore by impersonating shareholders and fraudulently claiming unpaid dividends.

According to the complaint filed by company secretary Thirumalesh Tumma, the fraud came to light when a genuine shareholder raised a rival claim for the same unpaid dividend a few months ago. The accused allegedly targeted investors who still held physical share certificates issued in 1994, without dematerialising them after the company’s listing on BSE and NSE in 2007.

Following the complaint, CCS registered a case on May 30 against K Varu Dinesh and others under sections 420 (cheating), 419 (cheating by personation), 467 (forgery of valuable security, will, etc.), 468 (forgery for cheating), 471 (fraudulently using forged documents as genuine), read with 120-B (criminal conspiracy) of the IPC.

“We are collecting details as part of the preliminary probe and based on the findings, appropriate legal action will be initiated,” said a CCS official.

The complainant detailed how the gang exploited unclaimed dividend information published on the company’s website, as mandated under the Companies Act.

“They sent letters to the company to update addresses and then sought details of procedures to obtain duplicate share certificates by claiming originals were lost. By submitting forged identity documents such as PAN cards with altered photographs and signatures, they obtained duplicate certificates. The duplicate share certificates were transferred into the names of their associates. Subsequently they were dematerialised and sold on the stock exchange,” the complainant alleged.

Seven instances of fraud were listed, involving 85,000 shares with a market value of over ₹3.31 crore as of April 28, 2026, based on NSE prices. In two cases, the company managed to halt transfers after rival claims from genuine owners.