Financial Daily from THE HINDU group of publications
Tuesday, Dec 02, 2003
Financial Daily from THE HINDU group of publications Tuesday, Dec 02, 2003 |
|
|
|
|
|
Corporate
-
Regulatory Bodies & Rulings Cipla told to pay Rs 77 cr penalty for over-pricing Our Bureau
New Delhi , Dec. 1 CIPLA Ltd has received notices from the National Pharmaceutical Pricing Authority (NPPA) to pay Rs 76.75 crore, or 50 per cent of the total amount that the company is to pay, on account of alleged overcharging in respect of three drugs for the period from July 2000 till July 2003. The amount is to be paid on or before December 26, 2003, the company has informed BSE. The company had challenged the inclusion of the drugs — Salbutamol, Theophylline, Ciprofloxacin and Norfloxacin within the ambit of price control. The petition filed by the company had been decided in favour of the company by Bombay High Court, which held that the said drugs were outside the ambit of price control, the company said. However, on appeal filed, the Supreme Court had remanded the matter to the Bombay High Court for further and more detailed examination in light of the principles laid down by the Supreme Court. The Supreme Court had also permitted the Government to recover 50 per cent of the amounts they claimed to have been overcharged. The Government had sent notices to the company demanding an aggregate of Rs 103.08 crore in respect of the drugs which, according to them, is 50 per cent of the amount allegedly overcharged by the company till June 2000. The company had, however, not paid the same in view of the interim orders obtained by the company in different proceedings from the Karnataka High Court and the Allahabad High Court in respect of the mentioned drugs. The company has also obtained legal opinion that it is not liable to make any payment of the said amounts at this stage in view of the aforementioned orders.
Article E-Mail :: Comment :: Syndication
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |
Copyright © 2003, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|