|
Over 86% of NPPA's total demand against overcharging yet to be recovered
|
|
Gireesh Babu, New Delhi
January 22 , 2024
|
|
|
Over 86 per cent of the total demand raised by the National Pharmaceutical Pricing Authority (NPPA) from the pharma industry on alleged overcharging of prices over the years is yet to be recovered. Of the total amount to be recovered, around 71.52 per cent is under litigation in various forums, according to data from the Authority.
As per the data available, till September, 2023, the drug price watchdog has reported a total of 2,433 cases of overcharging from the year 1979 to September, 2023 and raised demand for overcharging to the tune of Rs. 9,900.8 crore, including interest whenever updated.
Out of the demand, around Rs. 1,371.9 crore has been collected till September, 2023, leaving around Rs. 8,528.9 crore, which is around 86.15 per cent of the total amount, as amount yet to be recovered.
The Authority is in litigation with the companies on various forums including cases referred to collector and contested by the companies in the court of law is a total of Rs. 6,100.2 crore out of the total of Rs. 8,528.9 crore outstanding out of the demand raised.
Of the rest of the amount demanded, cases to an amount of around Rs. 230.9 crore are referred to the collector and the amount is still to be recovered, while recovery of around Rs. 5.5 crore is pending in connection to the industrial and financial restructuring and official liquidator. The rest of Rs. 2,192.4 crore is related to the overcharging cases under process, added the Authority.
It said that the suo-moto recovery for the period from April 1 to September 30, 2023 is Rs. 2.54 crore in Drugs (Prices Control) Order (DPCO), 2013 and Rs. 0.19 crore in DPCO 1995.
The Authority has reported 30 cases, all under the DPCO, 2013, during the year 2023-24 till September, 2023 as against a total of 148 cases in the whole year of 2022-23, 49 cases in 2021-22, and 38 cases in the year 2020-21.
However, it has recovered an amount higher than the total it recovered during the previous three fiscal years, in 2023-24 till September.
The Authority has realised a total of Rs. 46.32 crore during 2023-24, while it was just Rs. 5.10 crore during the entire 2022-23 period, Rs. 10.72 crore in 2021-22, and Rs. 24.10 crore in 2020-21. The total amount released by the authority from the total outstanding demand for the year 2019-20 was Rs. 85.10 crore.
The overcharged amount demanded including interest during the first six months of the current fiscal stood at Rs. 15.60 crore, while it was Rs. 140.32 crore for the whole fiscal year of 2022-23, Rs. 164.74 crore for 2021-22, and Rs. 26.80 crore during 2020-21.
Of the amount for which it raised demand during the year, in 2023-24 till September it has realised Rs. 7.73 crore with Rs. 7.87 crore pending recovery, while it was Rs. 10.11 crore (with Rs. 130.21 crore pending) in the 12 months of 2022-23, Rs. 6.66 crore (Rs. 158.08 crore pending) in 2021-22 and Rs. 13.77 crore (with Rs. 13.03 crore pending) in 2020-21.
It may be noted that the Department of Pharmaceuticals, in its year end review in December, 2023, said that the Government is effectively monitoring the prices of scheduled as well as non-scheduled medicines under DPCO, 2013 and takes action against companies found overcharging the consumers based on the references received from the state drugs controllers; individuals; samples purchased from the open market; reports from market based data; and complaints reported through the grievance redressal websites, ‘Pharma Jan Samadhan’ and ‘Centralized Public Grievance Redress and Monitoring System (CPGRAMS)’.
During the year 2023, the centre has collected 1,310 samples and 603 cases were found prima facie price violation, it said.
The Pharma Sahi Daam App 2.0 available on Android as well as iOS platform has features like searching of prices for medicines (brand wise or formulation wise), search latest ceiling prices of scheduled drugs, etc. Users can compare the prices of different brands of the same formulation; and share price details on messages etc. The app or search medicine facility tool facilitates consumers to verify whether medicines are being sold within the approved price range and also to detect any case of overpricing by pharmaceutical companies/chemists.
Users can also register a complaint or view the status of the complaint, which was raised earlier (OTP authentication). If there is any ceiling price violation, the buyer will be able to lodge a complaint against the company/chemist through Pharma Jan Samadhan/Pharma Sahi Daam, it added. There were over one lakh downloads of the App, said the Department.
| Summary of Overcharging Cases upto September, 2023 (Rs in Crore) | | Particulars | Cumulative till September 2023 | | No. of Cases | 2433 | | Overcharged amount demanded including interest whenever updated | 9900.8 | | Total amount realised | 1371.9 | | Amount outstanding out of the demand raised | 8528.9 | | Amoung still under litigation* | 6100.2 | | Cases referred to collector & amount still to be recovered | 230.9 | | Pending with BIFR/Official Liquidator | 5.5 | | Amount pending relating to the overcharging cases under process | 2192.4 | | | | | *Including cases referred to collector and contested by the companies in the court of law | |
|
|
|
|
|
|
|
|
TOPICS
|
That foods might provide therapeutic benefits is clearly not a new concept. ...
|
|
|
|
|