Ranbaxy Laboratories Ltd has sought more time to respond to the National Pharmaceutical Pricing Authority (NPPA) affidavit before Delhi High Court which reiterated NPPA stand that Ranbaxy had sold the built up stock of Pentazocine injections without revising the price notified by the government and made profit at public cost.
In a hearing on March 17, the Court has decided to take up the case on May 29, 2003 to enable the petitioner to be ready with its response. The hearing was based on the petition filed by Ranbaxy Laboratories challenging the show-cause notice given by NPPA asking the company to remit Rs 2.59 crore for allegedly not reducing the price of the drug Pentazocine after an official notification.
The court had in an earlier hearing directed the company to deposit Rs 1 crore with the government, and restrained the government from taking steps to recover the money from Ranbaxy subject to the court order.
Ranbaxy had sought quashing of NPPA's show-cause notice demanding the allegedly overcharged money as well as restraining the government from taking any action to recover the amount.
The NPPA notice had said that Ranbaxy sold the built up stock of Pentazocine injections without revising the price notified by the government and made profit at public cost.
The authority had informed the court that though Ranbaxy was exempted from the operation of price control under Drugs Price Control Order (DPCO) upto October 1999, the drugs was to be sold on fixed price after the exemption period.
Ranbaxy contended that the amount of overcharging has been arrived in an inaccurate manner and the company was not given opportunity for personal hearing, while demanding the amount with 15 per cent interest on it. The company argues that it was during the exemption period that the stocks were delivered to the distributors and the retailers.
The NPPA issued the demand notice for the overcharged money on February 13 while the show-cause notice was served on April 29, 2002.