Government Agency asks Cipla to pay Rs.748.27 crores on overcharging of drugs

Cipla has made announcements earlier regardin notice sent by NPPA demanding money from the company for overcharging. With reference to the earlier announcements dated September 05, 2003, December 01, 2003 and regarding notices received by the Company from the National Pharmaceutical Pricing Authority, Government of India demanding an aggregate of Rs 180.37 crores, being 50% of Rs 360.75 crores which according to them was allegedly overcharged by the Company till July 2003 in respect of five drugs, Cipla Ltd has announced that the Company has now received notices where the government has demanded entire 100% of the aforesaid amount along with interest aggregating to Rs 748.27 crores. These notices are contrary to the orders of the Hon'ble Supreme Court of India and the Company has received legal advice that the notices of the government are not tenable and sustainable.

The stock closed the day at Rs.232.25, down by Re.0.35 or 0.15% on volume of 106532 shares. The stock hit an intraday high of Rs.234.70 and low of Rs.231.25.

Source : Equity Bulls

Keywords