India’s major Pharmaceutical industry “Sun Pharma” on Wednesday demanded Taro to disclose investments made in its subsidiary –Taro Ireland.  

The issue between the two industries has worsened since Sun has blamed Israel’s Pharmaceutical Taro of indulging in "accounting gamesmanship" over the sale of its subsidiary, Taro Ireland.

The two had entered in a merger deal in 2007, when Taro was near the stage of Bankruptcy and Sun had agreed to invest $ 60 million to save it from the crisis.  

The merger agreement granted Sun Pharma the option to acquire all the shares of Taro's controlling shareholders.

According to, Sun Pharma chairman and managing director Dilip Shanghvi, Taro had been attempting to block the deal at every turn, when Sun had made efforts to complete the deal since the time they have entered into the merger deal.  

Shanghvi demanded full disclosure of facts relating to the proposed sale of Taro Ireland from Taro chairman Barrie Levitt in a letter released on Wednesday.

Letter also included that if Taro fails to do so, then Sun Pharma would "hold each of Taro's directors personally accountable," and also any potential buyer.

Shanghvi said while Sun Pharma had no intentions to interfere in Taro's operations, it publicly raised concerns to alert shareholders about the "unseemly circumstances" of the proposed sale.

He said its concerns arose from the fact that even Sun Pharma was a shareholder and potential owner of Taro.

The sun head also said according to the merged agreement signed in 2007, Taro needs to have the consent of Sun Pharmceutical for the proposed sale of Taro Ireland.  

He also said the terms of the proposed sale were "unfavourable" on various counts and Taro failed to demonstrate transparency in the entire deal.

Sun Pharma has demanded that Taro disclose full investments made in Taro Ireland till date, including capitalized losses, its present asset base, and complete financials for the last five years, and product details.