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NPPA – Battle to recover from Pharma Companies under DPCO Provisions

NPPANPPA has to collect a total sum of Rs 4551 crs from various Pharma companies upto Feb this year for overcharging of drugs from 1995 onwards on ground of earlier DPCO was notified. NPPA being a central body for ensuring the price capping in IPM, do not have very effective network of Inspectors to monitor the executions & violations. Many drug companies are flouting DPCO orders until violations are noticed.

In 2015-16, NPPA issued notices to 263 companies for recovery of Rs 928 Crs but could collect merely Rs 12 Crs. Its unsure when NPPA would be able to recover. Most of the cases are under different courts and aNPPA Big casesre in various stages of hearing.

After the new DPCO – 2013 covering 348 drugs, ministry revised the NLEM in Dec – 15 and raised the total number
to 384 in DPCO. This led to circumvention of the DPCO provisions on a much bigger scale.

In addition to this, NPPA is planning to set up Price monitoring & Resource Units in seven states for better compliance of its price fixing orders.

The states in first phase would be

  1. Gujarat
  2. Maharashtra
  3. Odisha
  4. Haryana
  5. Kerala
  6. Assam
  7. Manipur

Depending upon the success of these units, NPPA would set up more units in various other states.

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Sushil Kumar

Sales - Institutional (Himalaya)
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