Government Recovers Rs 72.73 Crore From Overcharging Pharma Companies

The central government has recovered Rs 72.73 crore from companies selling drugs at prices higher than allowed. The action, under the DPCO 2013, aims to control drug prices based on the WPI. Both scheduled and non-scheduled drugs are regulated, with annual revision of prices by NPPA.

The central government has taken decisive action against pharmaceutical companies selling drugs at prices exceeding the permissible limits. In the fiscal year 2023-24, it successfully recovered Rs 72.73 crore from the violators, as confirmed by Union Minister of State for Chemicals and Fertilizers Anupriya Patel in the Rajya Sabha on Tuesday.

According to the Drug Prices Control Order (DPCO), 2013, the National Pharmaceutical Pricing Authority (NPPA) revises the ceiling prices of scheduled medicines annually, based on the previous year's Wholesale Price Index (WPI). The revised prices are notified on April 1 each year and are made available on the NPPA's website.

DPCO, 2013, applies to both scheduled and non-scheduled drugs, restricting manufacturers from increasing Maximum Retail Price (MRP) by more than 10 percent over the preceding 12 months for non-scheduled formulations. Compliance is mandated under the Drugs and Cosmetics Act, 1945, with stringent measures in place to ensure adherence to good manufacturing practices.