Multiple Lawsuits In US, Canada Courts Against Dabur Firms For Cancer Causing Products

New Delhi: Three subsidiaries of Dabur International Ltd have been embroiled in legal case in US and Canada over products that have allegedly caused ovarian and uterine cancer.

The cases have been filed against these Dabur firms in US and Canadian federal courts, alleging that the hair-relaxer and hair- straightener products caused cancer. Dabur sells these products over-the-counter under various brand names.

Over 5,400 cases have been filed in courts alleging that Dabur subsidiary firms  --Namaste Laboratories, Dermoviva Skin Essentials and Dabur International -- selling hair products are causing cancer.

Earlier this week, Dabur India recieved GST demand notice of Rs 321 crore including interest and penalty, failing the payment will mean Show Cause Notice for the company.

"The Company has received intimation of tax ascertained as being payable under Section 74(5) of CGST Act, 2017, wherein GST short paid / notpaid amounting to Rs. 3,20,60,53,069/- has been advised to be paid by the Company along with the amount of applicable interest and penalty under Section 74(5) of COST Act, 2017, failing which Show Cause Notice will be issued," company said in a regulatory filing.

Dabur told in the BSE exchange filing that there is no impact on financial, operation or other activities of the Company due to this intimation of tax being payable.

"The Company will challenge the same based on strong merits by way of filing its reply/ submissions, before the relevant authorities. There is no impact on financial, operation or other activities of the Company due to this intimation of tax being payable. The impact will be limited to the extent of final tax liability as may be ascertained alongwith interest and penalty, if any."