Rs 17 Crores Drugs allegedly sold for Rs 77 crores: High Court Fines Dr Reddys Laboratories
New Delhi: In a violation of Essential Commodities Act, 1955, Dr Reddy’s has been found selling 11 drugs at a price over and above the maximum fixed by the government.
Responding to thisDelhi high court on thursday, levied a penalty of Rs 9 lakh on Dr Reddy’s Laboratories for selling 11 drugs-whose names were undisclosed for the offence. Essential Commodities Act, 1955 is an act under which the central government can fix a maximum price ceiling for certain essential commodities in the interests of the general public.
The counsel for the government argued, “They must follow the price (set by the central government under the provisions of the Essential Commodities Act) for the drugs, out of the total amount of Rs 77 crores, Rs 60 crores is the overcharged amount (amount charged by the Labs on the 11 drugs above the price ceiling).
Dr. Reddy’s Laboratories contested against the penalty amount imposed and contended that it should amount to Rs 9 lakh only as opposed to Rs 77 crore, as claimed by the government.
Livemint reports that the court directed the government to give a hearing to Dr. Reddy’s regarding alleged disagreement with respect to computation of the penalty amount. Dr. Reddy’s on their part assured the court that all necessary remedial steps have been taken and it was now complying with the price ceiling and selling the drugs at a price below the ceiling.
High court ordered Dr. Reddy’s to pay the admitted amount of Rs 9 lakh as penalty and directed the government to deal with issues raised on computation in a hearing to be held on 21 July