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Dabur faces pressure over cancer allegations in US, GST tax evasion notice

Oct 19, 2023

By: BlinkX Research Team

Dabur India Ltd.'s shares are under pressure since the firm has received notification from the Goods and Services Tax (GST) Intelligence of tax that the company has determined is due. Dabur India notified Indian stock market exchanges of the tax intimation and stated that it is examining the intimation and determining the best course of action in this regard.

The US lawsuit(s) that are currently pending against Namaste Laboratories LLC, Dermoviva Skin Essentials Inc., and Dabur International Ltd., the company's subsidiary firms, were also disclosed. Allegations of cancer spreading from the company's medications are being faced. The corporation asserted that the lawsuits are currently in the "pleading stage," and it will update Indian stock exchanges on any updates in this area.

Issueing clarification about the US litigations, Dabur India said, "Pursuant to provisions of Regulation 30 read with sub-para 8 of Para B of Part A of Schedule Ill of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), as amended, we hereby submit the disclosure regarding litigation(s) pending in the United States of America, against Namaste Laboratories LLC (“Namaste"), Dermoviva Skin Essentials Inc. (“Dermoviva") and Dabur International Ltd. (“DINTL"), all of which are subsidiaries of Dabur India Limited."

"Currently, the cases are in the pleadings and early discovery phases of litigation. There are various motions pending as well. Since we are in the initial stage of litigation, any final quantum of claim amount is neither probable nor estimable. However, the Company is disclosing the details of aforesaid pending litigations, since the cumulative value of impact on account of legal defence cost is expected to breach the materiality threshold under the Listing Regulations," Dabur India said.