The National Pharmaceutical Pricing Authority (NPPA) has initiated action in 89 instances of overcharging during the last financial year ending on March 31, taking the total number of cases to 1018 since its inception for a total amount of Rs.3381.91 crore.
The price regulator sent notices in 89 cases to recover an amount of Rs.384.51 crore during the year, against 103 cases for an amount of Rs.128.52 crore during the financial year of 2012-13. The agency was able to recover Rs.40.06 crore during the last fiscal, which was a big improvement on Rs.14.97 crore collected during 2012-13, according to the latest list of arrears. After 2008-09, last year recorded the highest collection.
During 2008-09, the agency sent notices in 135 cases to recover an amount of Rs. 335.5 crore, and it was able to collect Rs.51.41 crore, mainly because of the strong measures including the initiation of proceedings to attach the properties of the defaulters through the revenue officials.
The total number of overcharging cases stood at 1018 till March 31, 2014, since the inception. Out of the total amount of Rs.3381.91 that sought to be recovered, the agency was able to get only Rs.274.43 crore till date, as most of the cases were still stuck in various courts.
Based on the new Drugs Price Control Order (DPCO) 2013, the agency sent notices only in two cases, both against Dr Reddy’s Labs. In the case of Atocor 5mg and 10mg, the notices were sent and the company has already paid the difference amount of Rs.0.08 crore, as per the statement.
The companies which were served notices on the grounds of overcharging during the last financial year included Rexcin Pharmaceuticals Ltd, Indu Formulations, Anrose Pharma Ltd, Arvind Remedies, Lark Laboratories, Vamsi Labs, Syntho Pharmaceuticals, Laborate Pharmaceuticals, Elmac Remedies, Laborate Pharmaceuticals, USV Ltd, Concept Pharmaceuticals/Globe Traders, A.K. Biotech /Maarx Pharma, Tridoss Labs Ltd./Themis Medicare, Okasa Pharma, Helios Pharmaceuticals, Apple feld Internation, Sanofi India, Sumages Pharma, Valence Healthcare, Gurufcure Re-xite, Cipla, Priyal Pharma, Themis Medicare, Alembic, Wings Pharmaceuticals, Rx Healthcare/Akum Drugs, Gufic Biosciences, Gmbell Healthcare / Universal Lifesciences, Softech Pharma, Torque Pharmaceuticals, Darwin Pharma, Palson Drugs & Chemicals, Adonis, Percos India / Syncom Healthcare, Saichem Pharma / Pharmed, Tristar Formulations, Cadila Healthcare Ltd. / German Remedies, Mars Therapheuticas / Dr. Reddy, Mars Therapheuticas, M.J. Pharma, Softech Pharma, Gopish Pharma, Gopish Pharma, Strassenburg Pharmaceuticals, Madhav Biotech, Aristo Pharmaceuticals, Shreya Lifesciences, Baxter India, Vindica Life Sciences, NRI Vision Care, Universal Medicare, Nirma, French Formulation, J.B. Remedies, Glenmark Pharmaceticals, FDC Ltd, A.K. Labs, Zota Healthcare, and Monokem Laboratories.