The Supreme Court dismissed Sanofi 's petition seeking to quash criminal proceedings related to pharmaceutical supplies made to the Bhabha Atomic Research Centre (BARC) between 2012 and 2015. The order, dated September 7, 2026, addresses the maintainability of prosecution against the company even without individual employee arraignment.

The apex court did not record any finding of guilt nor adjudicate on the merits of the case. The Central Bureau of Investigation (CBI) complaint alleges conspiracy with a BARC personnel to wrongfully influence procurement decisions. The criminal complaint remains pending for trial.

Legal Context

Sanofi India Limited disclosed the development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company received the order on September 7, 2026, and filed the disclosure with stock exchanges on September 8, 2026.

Operational Impact

Sanofi stated it is assessing the judgment and formulating its next litigation strategy. The company confirmed that the judgment does not impose any penalty, conviction, or operational restriction at this stage. The matter involves allegations regarding supplies to BARC in Mysore during the 2012-2015 period.

Sanofi India Limited has received a show cause notice from GST authorities alleging tax misclassification for the financial year 2020-21. The Additional Commissioner of CGST and CX, Mumbai East, proposed a tax liability and an equal penalty, totaling ₹72.78 crore.

The notice, dated August 28, 2026, was issued under Section 74 of the Central Goods & Service Tax Act, 2017. It alleges that the company classified certain products at a concessional rate of 5% instead of the applicable 12% rate.

Regulatory Details

The company downloaded the notice from the GST portal on August 31, 2026, and disclosed it to stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was signed by Haresh Vala, Company Secretary and Compliance Officer.

Company Response

Sanofi India stated it is examining the notice in consultation with its tax advisors. The company plans to submit a reply within the prescribed time period after reviewing the relevant facts basis which the demand was determined.

Management indicated that it does not envisage any adverse impact on the company’s financials, operations, or other activities arising from this show cause notice.

What the Numbers Show

The proposed penalty equals the proposed tax liability exactly, reflecting the standard provision under Section 74 of the CGST Act for misclassification cases where suppression of tax is not alleged but incorrect classification is claimed. The total potential outflow of ₹72.78 crore represents a significant contingent liability if the authorities' view is upheld, though the company currently disputes the classification basis.