Dec 20 (Reuters) - Mitsubishi Electric Corp will likely have to pay about 50 billion yen ($593 million) in fines to the Japanese defense ministry for overcharging for defense equipment, the Nikkei business daily reported.
In January, Japan’s Defense Ministry said it has suspended dealings with Mitsubishi Electric, saying the manufacturer overcharged for its services.
The combined amount to be paid back by Mitsubishi Electric and its group companies will likely reach around 60 billion yen, or half the firm’s 120 billion yen estimate for group net profit in the current year ending in March, the daily said.
The company will also have to pay penalties and refund money to the Japan Aerospace Exploration Agency (JAXA), which could take the total fine amount to as much as 70 billion yen, the paper reported. ($1 = 84.2600 Japanese yen) (Reporting by Maneesha Tiwari in Bangalore; Editing by Sreejiraj Eluvangal)