Govt Moves Court On Price Control Of 8 Drugs

The government has filed a special leave petition against the judgment of the Bombay High Court in several petitions filed by drug manufacturers challenging the inclusion of certain drugs in the Drug Price Control Order (DPCO), 1995.

The inclusion of eight drugs, salbutamol sulphate, ciprofloxacin, norfloxacin, theophylline, cloxacin, sulphamethaxozele, trimethoph-rim and cefadroxyl in the first schedule of the DPCO, 1995, was challenged in the petitions.

Petitions were filed when the government observed that a number of bulk drug manufacturers and formulators were not adhering to the ceiling price set by the government for the formulations of those bulk drugs included for price control. They were also over-charging for these formulations.

Consequently, the National Pharmaceutical Pricing Authority (NPPA) issued showcause notices directing manufacturers to deposit the estimated overcharged amount with the authority as per the provisions of the DPCO, 1995.

Till June last year, Rs 300 crore was the amount overcharged by manufacturers in relation to the formulations of those drugs that were included for price control by the government.

In August, 2001, the Bombay High Court held the above-mentioned drugs do not fall within the purview of the DPCO, 1995, and are beyond the ambit of price control.

According to the DPCO, 1995, the criterion of including drugs under price control will be the minimum annual turnover of Rs 4 crore. Drugs of popular use, in which there is a monopoly situation, will also be kept under price control.