The Central Government were able to collect only Rs 2.6 crore into its Drug Prices Equalization Account (DPEA) up to June 30, 2005 and the money is just 2% of the actual overcharged amount that has been calculated by the government.

According to official records, so far demand notices amounting to approximately Rs 142 crore have been sent to 39 companies. In response to the notices, most of the companies had gone to the courts and are yet to deposit the amount of DPEA liability. Some of the companies had deposited part payments as per the direction of the various High Courts.

In addition to this, there are about 298 bulk drugs wherein liability has to be determined/quantified by the department after the stay order granted by Bombay High Court vide order dated 30.6.1997 in writ petition filed by Indian Drug Manufacturers' Association (IDMA) and others is vacated. The amount of DPEA liability in such cases could be very large.

As per the provisions of the DPCO 1979, the amount received in DPEA shall be spent only for paying to the manufacturer, importer, distributor, as the case may be, the short fall between his retention price and the common selling price or, as the case may be, the pooled price for the purpose of increasing the production, or securing the equitable distribution and availability at fair prices or drugs and for expenses incurred by the government in discharging the functions under that paragraph.