The move initiated by the National Pharmaceutical Pricing Authority (NPPA) a few years back to refer cases of overcharging to district collectors of concerned States for recovery of arrears has slowly started showing results, though still well below the desired levels.
The price monitoring agency has so far referred 76 cases involving a total amount of Rs.149.58 crore till October 31 and collected Rs.62.28 crore from the defaulters, according to the latest statement from the NPPA on the status of the cases.
The cases referred for revenue recovery were mainly involving medium and lesser known entities, though some big names like Reddy’s, GSK, Wyeth, and Cadila are also featured in the list. Out of the total cases, as many as 26 cases have been subsequently dragged to the courts across the country.
As per the last available statistics, the NPPA had referred 61 cases to the collectors demanding a recovery of Rs.147.06 crore till June 30, 2009. The total recovered amount till that time was Rs.53.74 crore, thus making some progress in the process during the last 16 months.
In the latest list of cases referred to the collectors, Modi Mundi Pharma leads the list with arrears of Rs. 33.70 crore out of which only Rs.16.50 crore were paid. Wyeth stands second with a due of Rs.17.26 crore. However, it paid already Rs.12.87 crore to the NPPA. One case of N R Jet Enterprises involving Rs.14.88 crore was also referred and the company paid Rs.14.11 crore already. Two cases of Lyka Labs (Rs.11.51 crore and Rs.24 lacs) were also referred. But the company has not paid anything so far.