The government of India has recently handed over a demand notice of around Rs 27.30 crore inclusive of interest to the Cipla Ltd. The officials from the government have informed that the notice has been handed over for alleged overcharging by the company between the months of December 2003 and June 2007 on the antibiotic Ciprofloxacin. However, the Cipla Ltd has claimed in a recent statement to the BSE that the demand is opposing to the orders of the Supreme Court and it has also received legal advice from its advisors. It also said that the entire amounts demanded by the Government are not tenable and sustainable.
According to the officials from the government, the current total alleged overcharging amount on Cipla over the last five-plus years is estimated at Rs 1,015.62 crore. The officials also informed that the drugs under the scanner for alleged overcharging are the respiratory drugs like Salbutamol and Theophylline; antibiotics, Ciprofloxacin and Norfloxacin and the cephalosporin-antibiotic Cefadroxil. They further said that the company has contested the Governments notice in the past and the issue is under litigation at the moment.
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| Posted : 1/25/2008 |
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