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Rediff.com  » Business » NRI pays £1mn for cartelisation

NRI pays £1mn for cartelisation

By Prasun Sonwalkar in London
March 07, 2008 09:20 IST
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Goldshield, a major pharmaceuticals company accused by Britain's health authorities of fixing the price of medicines, agreed to pay one million pounds to settle the claims this week.

The company, founded by the Gujarat-origin entrepreneur Ajit Patel, has been under the scanner since January 2005 for allegedly being part of a cartel that fixed prices of warfarin, a blood-thinning drug.

The Serious Fraud Office (SFO) is continuing with its criminal investigation relating to allegations concerning warfarin and penicillin-based antibiotics supplied to the

National Health Service between January 1996 and December 2000.

As part of an inquiry into the alleged multimillion-pound scam, police raided six drug companies in 2002.

In April 2002, in one of the biggest single operations carried out by SFO, more than 200 officers raided 11 homes and 16 business addresses - including Ajit Patel's house and Goldshield's Croydon offices - seizing files and computer equipment.

Without admission of liability and on a "full and final basis", Goldshield on Wednesday agreed to pay 250,000 pounds to the Department of Health and Social Services of Northern Ireland.

On Tuesday, the company settled its claim with the Scottish authorities for 750,000 pounds.

The latest settlement comes eight months after the company paid the NHS 4 million pounds to settle its claims, bringing the total paid out by the company to 5 million.

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Prasun Sonwalkar in London
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