Cipla gets demand notice from Govt of India

With reference to the earlier announcements dated September 05, 2003, December 01, 2003, April 13, 2007, May 05, 2007, November 01, 2007 regarding notices received by the Company from the National Pharmaceutical Pricing Authority, Government of India demanding an aggregate of Rs 991.39 crores alongwith interest which according to them was allegedly overcharged by the Company till March 2007 in respect of drugs listed in the said notices, Cipla Ltd has informed that the Company has now received further demand notice where the Government has demanded an amount of Rs 24.23 crores inclusive of interest which according to them was allegedly overcharged by the Company during the period April 2006 to March 2007 in respect of the drug Ciprofloxacin. The demand is contrary to the orders of the Hon'ble Supreme Court of India and the Company has received legal advice that entire amounts demanded by the Government are not tenable and sustainable.