CCI slaps fine of nearly Rs 73 crore on Lupin; Stock down 0.76%
CCI has imposed monetary penalty of nearly Rs 73 crore on pharma company Lupin for allegedly refusing to supply drugs to M/s Maruti & Co., in Karnataka state on account of non-possession of NOC from Karnataka Chemists and Druggist Association (KCDA).
“...the Commission imposed a penalty at the rate of 1% of Lupin’s average turnover, amounting to Rs 72.96 crore,” Ministry of Corporate Affairs said citing the Competition Commission of India (CCI) release on Monday.
Reacting to the news, at 10:02 hours, the stock of Lupin was trading down 0.76% or Rs 13.05 at Rs 1,710.30 on the Bombay Stock Exchange (BSE) on Tuesday.
See LIVE updates on the stock price of Lupin here-
"The Competition Commission of India (‘Commission’) has found the Karnataka Chemists and Druggist Association (‘KCDA’) and Lupin Ltd. (‘Lupin’) to be in contravention of the provisions of the Competition Act, 2002,” the statement noted.
The Commission has also imposed a monetary penalty of Rs 8,60,321 on KCDA when a case filed by M/s Maruti & Co., stated that KCDA restraints pharmaceutical companies from appointing new stockists in the Karnataka state unless a 'No Objection Certificate (NOC)' is obtained from it.
It was alleged that Lupin refused to supply drugs to M/s Maruti & Co., on account of not having obtained NOC from KCDA, the release further said.
Lupin is the US-based pharmaceutical company and is headquartered in Mumbai.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.