NPPA still to recover Rs 8098.78 crore from pharma firms for overcharging

The National Pharmaceutical Pricing Authority (NPPA) has issued about 2,128 demand notices to pharmaceutical companies (1345 instances under the DPCO, 1995 and 783 cases under the DPCO, 2013) for overcharging consumers on the sale of formulations and medicines at prices above the ceiling/retail price authorized by the Authority.

The total demanded amount by NPPA works out to be about Rs 9407.36 crore, out of which an amount of about Rs 1308.58 crore has been deposited by the companies to the government. In respect of 334 cases, the demands raised for Rs 6,612.10 crore overcharging amount have been challenged in various courts.

The Parliament was apprised about the same in response to a series of questions in Rajya Sabha regarding the pharma companies selling medicines at prices higher than the rates capped by the National Pharmaceutical Pricing Authority (NPPA).

Replying to the queries placed by K.R.N. Rajesh Kumar, the Minister of Chemical and Fertilizer, Mansukh Mandaviya stated the National Pharmaceutical Pricing Authority (NPPA) under the Department of Pharmaceuticals (DoP) monitors the prices of both scheduled and non-scheduled formulations on a regular basis as per the provisions of the Drugs (Prices Control) Orders (DPCOs) to check overcharging by the pharmaceutical companies.

Further, he went on to say that whenever companies are found to be overcharging consumers in the sale of medicine, the NPPA issues notices to the companies to deposit the overcharged amount along with applicable interest and penalty, wherever applicable.

While replying to the query related to any action taken or notices issued so far by NPPA to such companies and the details thereof, the Minister informed, "Up to 31st March, 2021, NPPA has issued about 2,128 demand notices (1345 cases under the DPCO, 1995 and 783 cases under the DPCO, 2013) to pharmaceutical companies for their having overcharged consumers on the sale of formulations/medicines at prices above the ceiling/retail price notified by NPPA."

The Ministry further added, "The action for recovery of the overcharged amount is a continuous and on-going process, undertaken as per the extant provisions of various DPCOs issued from time to time."

In addition to this, giving details about the same, the Ministry further stated, "The total demanded amount by NPPA works out to be about Rs 9407.36 crore, out of which an amount of about Rs 1308.58 crore has been deposited by the companies to the government."

"In respect of 334 cases, the demands raised for overcharging amounting to Rs 6,612.10 crore have been challenged in various courts." he added.