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Suit on Johnson & Johnson staff

New Delhi, June 27: The CBI today filed a chargesheet against five top executives of Johnson & Johnson in a Mumbai court, accusing them of duping the Centre.

The investigation bureau has alleged that the employees gave false declarations to seek price exemption on scheduled drug formulations.

The employees charged include executive vice-president and company secretary A.V. Upadhyay, general manager (legal) P.K. Mehta, pharmaceutical division president A.V. Dangi and director R.R. Mallar. They have been booked under Sections 420 (cheating), 120(b) (criminal conspiracy) of the IPC and under the Essential Commodities Act of 1955.

The next date of hearing has been fixed for July 16. An FIR was registered by the CBIs Mumbai branch in 2001.

The CBI has charged the five executives of Johnson and its fully owned subsidiary NR Jet Enterprises Limited with entering into a criminal conspiracy to cheat the Union government of Rs 45.3 crore in excise duty by violating the Drugs (Price Control) Order, 1995.

Under the order, only small scale industry units are entitled to price exemption on scheduled drugs.

As the multinational was not entitled to the exemption, it floated the subsidiary, a paper creation, to fraudulently avail the benefit, the CBI said.

The subsidiary was shown as the manufacturer of the scheduled drug formulations while the multinational actually made them, the CBI claimed.

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