SC tells CIPLA to deposit Rs 175 crore in overcharging case
Mumbai: The Apex court has directed pharmaceutical giant CIPLA to deposit a sum of Rs 175.07 crore with the government in respect to a case of alleged overcharging in respect to certain drugs.
The case goes back to Rs 2003 when Cipla received a notice from NPPA on account of alleged overcharging on drugs which were covered under the price cap. Challenging the notice, the company went to court and the litigation has been on since then.
Now, the court is reported to have asked the said money with the Central government. Moreover, the petition has been to the Bombay high court for final hearing, where the court will decide the case on merits.
The company has been directed to deposit the said amount within six weeks.
In its order dated August 2003 the Supreme Court had directed the government to recover 50 per cent of the "overcharged" amounts. "The interim order restraining the government from recovering the balance amount has been continued by the Supreme Court. The Bombay High Court will now hear the matter on merits," the company said in its notification to the exchange.
The case goes back to Rs 2003 when Cipla received a notice from NPPA on account of alleged overcharging on drugs which were covered under the price cap. Challenging the notice, the company went to court and the litigation has been on since then.
Now, the court is reported to have asked the said money with the Central government. Moreover, the petition has been to the Bombay high court for final hearing, where the court will decide the case on merits.
The company has been directed to deposit the said amount within six weeks.
In its order dated August 2003 the Supreme Court had directed the government to recover 50 per cent of the "overcharged" amounts. "The interim order restraining the government from recovering the balance amount has been continued by the Supreme Court. The Bombay High Court will now hear the matter on merits," the company said in its notification to the exchange.
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