NPPA Slaps Natco Pharma with Rs 4.92 Crore Demand Notice Over Alleged Drug Overcharging
New Delhi: Natco Pharma Limited has received a demand notice of over Rs 4.92 crore from the National Pharmaceutical Pricing Authority (NPPA) over alleged overcharging of two drugs during the period between April 2023 and November 2023.
According to the company’s regulatory filing submitted to stock exchanges, the demand notice was issued under Paragraph 15 of the Drugs Price Control Order (DPCO), 2013.
The notice, dated May 12, 2026, directs the company to deposit Rs 4,92,25,923, which includes the alleged overcharged amount along with penalty and interest.
The company informed the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) that the alleged violations relate to overcharging of two medicines covered under price control regulations during the specified audit period.
NATCO Pharma stated in its disclosure that the demand notice was received from the NPPA, New Delhi, and clarified that there would be “no material impact on financial, operational and other activities of the Company.”
The company also acknowledged a delay in making the regulatory disclosure to stock exchanges, attributing it to “technical issues/procedural delay in flow of information.” It further said that necessary steps would be taken to avoid recurrence of such delays in future.
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