Wockhardt Hit With Rs 5 Crore Customs Penalty, Rs 10 Crore Redemption Fine Over API Misclassification
Mumbai: Wockhardt Limited has received an adjudication order from the Commissioner of Customs, Nhava Sheva-II, imposing a penalty of Rs 5 crore and a redemption fine of Rs 10 crore in connection with the alleged mis-classification of an Active Pharmaceutical Ingredient (API) exported by the company.
The Commissioner of Customs, NS-II, Centralized Adjudication Cell at Jawaharlal Nehru Custom House, Nhava Sheva, imposed the Rs 5 crore penalty under Section 114(iii) of the Customs Act, 1962.
In addition, the company has been directed to pay a redemption fine of Rs 10 crore in lieu of confiscation of the goods allegedly mis-declared by Wockhardt under Section 125(1) of the Customs Act, 1962.
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The order also levied a penalty of Rs 1 crore on Dr Aravind Y Merwade, an officer of the company, under Section 114(iii) of the Customs Act in connection with the alleged mis-classification.
Wockhardt said it is confident about the merits of its case and is taking necessary steps to challenge the order through an appeal before the appropriate authority. The company stated that, apart from the monetary fine and penalties, the order would not have a material impact on its financials, operations or other activities.
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