Drug price regulator NPPA is trying to recover a whopping Rs 4,551 crore, including interest, from various pharma companies for overcharging as of February this year. As much as 82 per cent of the total amount is under litigation.
Minister of State for Chemicals and Fertilisers Hansraj Gangaram Ahir said in a reply to Lok Sabha recently that, “Since inception of National Pharmaceutical Pricing Authority (NPPA), there are 1,389 cases as on 29.02.2016 where demand notices have been issued by NPPA to pharmaceutical companies.”
A sum of Rs 4,935.92 crore has been demanded as “overcharged amount including interest whenever updated” out of which Rs 384.91 crore has been realised till February end this year, he added.
“The outstanding amount is Rs 4,551.01 crore as on 29.02.2016 and Rs 3,698.32 crore representing about 82 per cent of the total outstanding amount is under litigation in various High Courts and Supreme Court,” Ahir said.
NPPA is actively pursuing the court cases, he added. NPPA mandate is to fix or revise the prices of controlled bulk drugs, formulations and to enforce prices and availability of the medicines in the country. It has been entrusted with fixation of prices of scheduled drugs under the
Drug (Price Control) Order, 1995 (DPCO) 1995 and DPCO 2013. NPPA also monitors prices of decontrolled drugs in order to keep them at reasonable levels.
