Government recovers only Rs 598 crore of Rs 4,958 crore drug overcharging fine

The government has been able to recover only Rs 598.81 crore, which is just about 12 per cent of the total fine worth Rs 4,958.74 crore slapped on drug firms for overcharging.

"Since inception of National Pharmaceutical Pricing Authority (NPPA), 1,467 demand notices as on October 31, 2016 have been issued to the companies for their overcharging the consumers on the sale of medicines," Minister of State for Chemicals and Fertilisers Mansukh L Mandaviya said in a written reply to the Lok Sabha on Tuesday.

Of the total, about 1,282 cases have been registered under Drug (Prices Control) Order 1995, while 184 cases under the DPCO 2013.

"These demand notices relate to a total amount of Rs 4,958.74 crore. Out of the total amount demanded so far, an amount of Rs 598.81 crore has been deposited by the companies to the government. An amount of Rs 3,460.32 crore is under litigation," Mandaviya said.

He added that action for recovery of the overcharged amount is taken as per the provisions of Drug (Prices Control) Order 1995 and Drug (Prices Control) Order 2013.

Set up in 1997, NPPA has been entrusted with the task of fixation/revision of prices of pharma products, enforcement of provisions of the Drugs (Prices Control) Order and monitoring of prices of controlled and decontrolled drugs.