NPPA sends notices in 64 cases of overcharging this year as Cipla continues to lead list
Giving further momentum to its process of recovering overcharged amount, the National Pharmaceutical Pricing Authority (NPPA) has received Rs.20.26 crore in the nine months during this year, against Rs.14.97 crore collected during whole of last fiscal.
NPPA has sent notices to the companies in 64 cases till September end this year, taking the total number of overcharging cases to 993 since its inception. The total overcharged amount this year stood at Rs.287.43 crore, taking the total amount sought to be recovered from the companies since its inception to Rs.3029.04 crore, according to the latest figures released by the NPPA.
Cipla has been continuing as the biggest defaulter for several years now, accounting for nearly half of the total amount of overcharging. This year also Cipla got notices in two cases (CiploxE/E Drops and D-Fylin Tab) for a total amount recovery of Rs.85.05 crore and it did not pay any amount.
During the last financial year of 2012-13, the agency sent 103 notices to recover Rs.127.76 crore on the grounds of overcharging and it managed to recover only Rs.14.97 crore. During 2011-12, notices were sent in 40 cases for a recovery of Rs.33.49 crore. During 2010-11, the total amount to be recovered in 42 cases was Rs.81.82 crore.
Backed up by intensive efforts like court cases and attachment notices through revenue officials, the recovery process has showed some momentum this year, after a sluggish phase of five years. After Rs.51.41 crore collected during 2008-09 and Rs.35.41 crore during 2009-10, the recovery had gone slow. During 2010-11, the total amount stood at Rs.17.26 crore and it further went down to Rs.10.69 crore during 2011-12.
Among the 64 cases, Rexcin Pharmaceuticals Ltd and Laborate Pharmaceuticals were given notices in seven cases each on the ground of overcharging beyond the permissible limit of 10 per cent annually. Concept Pharmaceuticals (three cases), Okasa Pvt. Ltd (three cases), Gopish Pharma Ltd (three cases), Softech Pharma (two cases), Torque Pharmaceuticals (two cases), and Mars Therapheuticas (three cases) were given notices in more than one instances.
Other companies who violated the overcharging norms were Indu Formulations , Anrose Pharma Ltd, Arvind Remedies Ltd, Lark Laboratories Pvt. Ltd, Vamsi Labs Ltd, Syntho Pharmaceuticals Pvt. Ltd, Elmac Remedies Pvt. Ltd, USV Ltd, Globe Traders , A.K. Biotech, Maarx Pharma, Tridoss Labs Ltd, Themis Medicare, Helios Pharmaceuticals, Apple Feld Internation , Sanofi India Ltd, Sumages Pharma, Valence Healthcare, Gurufcure Re-xite, Priyal Pharma, Themis Medicare Ltd, Alembic Ltd, Wings Pharmaceuticals, Rx Healthcare, Akum Drugs, Gufic Biosciences, Gmbell Healthcare, Universal Life Sciences,), Darwin Pharma Pvt. Ltd, Palson Drugs & Chemicals , Adonis Pvt. Ltd, Percos India Pvt. Ltd, Syncom Healthcare Ltd, Saichem Pharma, Pharmed Ltd, Tristar formulations, Cadila Healthcare Ltd, German Remedies, Torque Pharmaceuticals, , M.J. Pharma, USV Ltd, and Strassenburg Pharmaceuticals Ltd.