Despite Price Caps, Pharma Firms Overcharged Patients by Rs 10,000+ Cr: NPPA

Of this, the total amount realized so far is Rs 1,487.1 crore, leaving an outstanding amount of Rs 8,526.1 crore. NPPA data further shows that Rs 5,938.7 crore of the outstanding amount is under litigation, Rs 223.8 crore has been referred to district collectors for recovery, and Rs 5.5 crore pertains to cases pending with BIFR or official liquidators.

After accounting for these categories, Rs 2,358.2 crore relates to overcharging cases that remain under process. The data spans violations detected over multiple decades, reflecting recoveries and pendency across successive financial years and regulatory regimes

A detailed NPPA statement titled “Status of Overcharging Cases up to September 2025” reveals hundreds of instances where drug manufacturers priced formulations above the ceiling rates fixed under various Drug Price Control Orders (DPCO) of 1979, 1987, 1995 and 2013.

Official data released by the National Pharmaceutical Pricing Authority (NPPA) indicates that pharmaceutical companies across India have allegedly overcharged consumers by several thousand crore rupees by selling medicines above government-fixed ceiling prices under various Drug Price Control Orders (DPCOs).

NPPA data identifies the principal overcharged amount as the base excess charged by companies over and above the notified ceiling prices. The figures show that, across individual formulations, principal overcharging ranges from a few lakh rupees to several thousand crore rupees.

In multiple cases, NPPA records indicate that single formulations alone account for principal overcharges exceeding Rs 1,000 crore, particularly in matters arising under DPCO 2013 and DPCO 1995. These figures reflect extended periods during which medicines were sold above the prescribed ceiling prices before the cases were detected or adjudicated.

According to NPPA data, interest is levied on the overcharged amount from the date of violation until the amount is recovered, in line with the provisions of the Drug Price Control Orders.

The figures show that in many long-pending cases, the interest accrued is comparable to or even higher than the principal overcharged amount, substantially increasing the overall liability of the companies involved.

The cumulative effect of this is evident in the total recoverable amounts recorded by the NPPA, which include both the principal overcharge and accrued interest. In several instances, particularly where violations date back many years, the total recoverable liability runs into hundreds or even thousands of crore rupees per formulation or across multiple formulations of a company, reflecting the prolonged pendency of such cases.

NPPA data indicates that recovery has been partial, minimal, or nil in a significant number of overcharging cases. In several high-value matters, no amount has been recovered at all, even though interest on the overcharged sums has already been calculated up to recent dates.

As a result, NPPA records show large outstanding dues in many cases. In numerous instances, the unpaid amount is almost equal to the total recoverable liability, including interest, reflecting that recovery proceedings are still pending or yet to be concluded.

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