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Lupin shares tumble as CCI imposes Rs 73 crore fine

Lupin shares tumble as CCI imposes Rs 73 crore fine

NEW DELHI: Shares of Lupin ended in the negative territory after the Competition Commission imposed a penalty of Rs 73 crore on the company and its two officials for indulging in unfair business practices with regard to supply of medicines in Karnataka.

Lupin has been asked to pay a penalty of Rs 72. 96 crore, accounting for 1 per cent of its average turnover for three years starting from 2011-12.

Company’s two officials – Amit Kumar Dhiman and Nishant Ajmera – have been fined Rs 5,117 and Rs 8,393, respectively, as per the CCI order.

Shares of Lupin opened at Rs 1,747.80, then plunged to an intra-day low of Rs 1,698.05 on the BSE.

On the NSE, the stock opened at Rs 1,741, then fell to an intra-day low of Rs 1,697.

Lupin spokesperson had said the company would be looking at legal resources, including filing an appeal against the order passed by the Competition Commission of India (CCI).

Together, the regulator has imposed a total fine of little over Rs 73 crore on six entities — Lupin, KCDA and four individuals.

They have also been directed to “cease and desist” from anti-competitive practices. KCDA has been penalised Rs 8.6 lakh while its two officials – A K Jeevan and D S Guddodgi – have been fined Rs 56,055 and Rs 4.5 lakh, respectively.

In its order dated July 28, CCI said KCDA restrained pharmaceutical companies from appointing new stockists in Karnataka unless a No-Objection Certificate (NoC) was obtained from it.

Further, it was found that Lupin also refused to supply drugs to the complainant in the absence of NoC.

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Source: PTI
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