Drug overcharging case: Supreme Court directs Cipla to pay Rs 175.07 crore
India's Supreme Court had directed drug maker
Cipla to deposit a sum of Rs 175.07 crore within six weeks in a case related to
alleged overcharging in certain drugs as per the provisions of Drug (Price
Control) Order, 1995.
In a
note to stock exchanges late on Friday, Cipla said the writ petitions filed in
the Bombay High Court that were pending before Supreme Court have been
retransferred to the Bombay High Court for final hearing. The initial order for
the deposits was issued by Supreme Court in 2003, which had directed the government
to recover 50% of the overcharged amount by the company.
"The Bombay High Court will now hear
these matters on merits," the drug maker said. Cipla and India's drug
pricing watchdog have been in a drawn-out legal tussle. The authority has
charged Cipla of charging higher prices for a set of drugs than the ceiling
price based on a fixed formula.
Source: http://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/drug-overcharging-case-supreme-court-directs-cipla-to-pay-rs-175-07-crore/articleshow/53345143.cms
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