Govt slaps pharma cos with Rs 2,150 cr notice for overcharging

The chemicals and fertilisers ministry today said it has issued demand notices for over Rs 2,150 crore to various pharma companies for overcharging the consumers.

The government has found out that certain companies have been selling medicines at higher prices to consumers than those fixed by the National Pharmaceutical Pricing Authority (NPPA), minister of state for chemicals and fertilisers Srikant Kumar Jena told the Rajya Sabha in a written query.

"Based on detection of overcharged cases during August 1997 to April 2010, the NPPA has issued demand notices in 746 cases involving an amount of Rs 2,150 crore," Jena said.

Of this, only Rs 192.04 crore could be realised till April 30, 2010, leaving a balance of Rs 1,958.39 crore. Out of this, as much as Rs 1,877.67 crore are under litigation and pending in various courts, he added.
     
As per the provisions of the Drug Price Control Order of 1995, the government fixes or revises the price of medicines and no company can sell any scheduled drug at a price higher than the one fixed by it.