Companies

Cipla gets ₹81-cr notice for overcharging

 Our Bureau Mumbai | Updated on April 29, 2014 Published on April 29, 2014

Drugmaker Cipla confirmed that it had received a notice of ₹81 crore for overcharging on Ciplox eye drops, this January.

The notice from the National Pharmaceutical Pricing Authority was for the period May 2008 to November 2013.

However, the company added: “the notice was erroneous because we were complying with the Government announced prices effective April 2010.”

And for the period before April 2010, the issue was pending in the Supreme Court, “and we were protected by an interim order of the Supreme Court.” The company further added that it had received an overcharging notice for another product (Alerid D) for ₹32 crore, first in January 2014, and for a period of 13 years (2000 to 2013).

“We had not manufactured this product at all during this period,” the company clarified.

 Cipla has challenged various price notifications, including that of Ciplox eye drops and Alerid D tablets, and the Supreme Court has already issued an interim order that no coercive steps can be taken against the company to recover the money, a Cipla statement said.

The company has also received legal advice that entire amounts demanded by the Government are not tenable and sustainable, it added.

Published on April 29, 2014
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