When pharma cos. don’t pay up penalties

  1. Drug pricing regulator,the National Pharmaceutical Pricing Authority (NPPA),had imposed penalties on pharmaceutical companies that have been found overcharging consumers on the prices of medicines.It was issued under the provisions of the Drug Price Control Order (DPCO).
  2. As per DPCO provisions,companies are liable to deposit overcharged amount for these drugs with interest from the date of launch,along with penalty.
  3. Drug Price Control order,2013 is an order issued by the Government under the Essential Commodities Act which enables it to fix the prices of some essential bulk drugs and their formulations.DPCO provides (a) The list of price control drugs (b) procedure for fixation of prices of drugs and (c)Penalties for contravention of provisions.
  4. NPPA is an independent body set up in 1997 under Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers.Its mandate is to (a)fix/revise controlled bulk drugs prices and formulations (b)enforce prices and (c)availability of medicines under Drug(Price Control) order, 2013.
  5. NPPA is also tasked with recovering amounts overcharged by manufacturers for the controlled drugs from consumers.