 "An employee works at the reception area of Cipla at its headquarters in Mumbai")
The Supreme Court has directed Cipla to deposit Rs 175.07 crore with the government for alleged overcharging in respect to certain drugs, the company informed the stock exchange on Friday.
The case pertains to 2003 when Cipla received a demand notice from the National Pharmaceutical Pricing Authority for alleged overcharging of drugs covered under price cap. Cipla challenged the government order and the issue is under litigation since then.
In its notification to the Bombay Stock Exchange, Cipla said Supreme Court has retransferred its petition to Bombay High Court for final hearing and directed it to deposit the 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.
