The National Pharmaceutical Pricing Authority (NPPA) has asked the drug manufacturers to suo-moto work out the overcharged amount by themselves in respect of drugs sold without implementing the new price revision and deposit the money with the government along with interest.

The NPPA, through letters sent to all the leading industry bodies, made this direction following the Supreme Court dismissal of the petitions filed by some manufacturers regarding the provisions of the DPCO to implement the price revision within 15 days from the date of notification.

“As part of self-regulatory exercise, you are requested to advise your member units to suo-moto work out the overcharged amount by themselves in respect of quantities manufactured before issue of the price notification order but sod to the consumer/public at higher price without implementing the new revised price even after expiry of the 15 days as specified in paragraph 14(1) of DPCO, 1995 duly certified by chartered /cost accountant and deposit the same with the government along interest at the rate of 15 per cent per annum due thereon,” said a notice by the NPPA.

As per the Paragraph 14(1) of the DPCO, 1995, every manufacturer or importer is required to carry into the effect of price of a bulk drug or formulation as the case may be fixed by the government from time to time, within 15 days from the date of notification in the official gazette or receipt of the order of the government in this behalf by such manufacturer or importer.

The Supreme Court however dismissed the appeals by the manufacturers in this regard and upheld the stand of the NPPA through a judgment on December 9, 2013 and clarified the position.

“The judgment has upheld NPPA’s stand that the companies would be required to implement the notified revised price in respect of the old bathes which were manufactured before the issue of the said notification but sold to the consumer after expiry of 15 days from the date of issue of notification,” the NPPA notice said.

“It may be apprehended that there may be the large number of cases where the companies may not have implemented the revised price in respect of the quantity manufactured prior to the issue of the price notification order and continued to sell at pre-revised price even after expiry of 15 days from the date of notification,” the NPPA said while asking the companies to follow the rule and pay the dues suo-moto.