NPPA recovers Rs 827 crore from pharma companies

Since inception of NPPA till February 2018, 1,763 demand notices (including suo-moto deposits) have been issued to pharmaceutical companies for their having overcharged patients on the sale of formulations at prices above the ceiling price notified by NPPA

NPPA recovers Rs 827 crore from pharma companies
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  • The National Pharmaceutical Pricing Authority (NPPA) monitors the prices of scheduled and non-scheduled formulations on regular basis.
  • It also keeps a check on pharmaceutical companies who overcharge consumers.
  • When such instances occur the NPPA issues notices to the companies responsible for overcharging

Recently information was divulged in the Lok Sabha, about pharmaceutical companies overcharging consumers and patients, in a statement presented in the parliament, Union Minister for Road Transport and Highways, Shipping, Chemical and Fertilizers, Mansukh L. Mandaviya revealed that Rs. 827.25 crore recovered from pharmaceutical companies in overcharging cases till February 2018.

Demand notices have been issued for total amount of Rs. 5992.14 crore. An amount to the tune of Rs. 827.25 crore has been recovered from the companies to the government in overcharging cases. The detailed list of overcharging cases where demand notices have been issued is available on NPPA website

Speaking to My Medical Mantra, RP Yajurvedi Rao, president of the Society for Awareness of Civil Rights said, “This is huge amount. Basically these pharma companies kept the money outstanding for a long period of time. On this money’s interest, these companies can build up new plants. Plants build in such a way should be closed. Therefore, our NGO frequently wrote letters to central government. To recover this money the government should force the companies to pay up.”

Dr Abhijit More, conveyor of Jan Aarogya Abhiyan said, “This move taken by the NPPA is a good and positive step to help consumers. Moreover, they have recovered and collected a large amount. The remaining money should be recovered as soon as possible. The NPPA should avoid loop holes.”