The department of chemicals and petrochemicals has rejected the recommendation of the National Pharmaceutical Pricing Authority for modifying the provisions of penalties for violation of the Drugs Prices Control Order. The authority had recommended that if a firm violated any of the provisions, its manufacturing or sales licence should either be suspended or cancelled.
The existing provision states that the penalty or punishment for violation of any provision of the price control order will be in accordance with the provisions of the Essential Commodities Act, 1955.
As per the provisions of the Act, the penalty for violations is imprisonment for at least three months and maximum two years and the violator is also liable for a fine of at least Rs 25,000.
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The pricing authority had said that the penalty appeared to be a draconian provision. It felt that such punishments were unwarranted for violations under the drug pricing control order.
Instead, it suggested that the pricing authority should consider imposing a penalty in terms of cancellation or suspension of the manufacturing or the sales licence of the firm found to be guilty.
The pricing authority had suggested that the department of chemicals and petrochemicals should take up the matter with appropriate authorities for incorporating such a provision under the price control order. The amendment will, however, require the concurrence of various ministries, including the ministries of health, law and consumer affairs.
The authority had also recommended that petty offences might be disposed off with minor penalties like imposition of compounding fees, as is the provision under the existing Package Commodities Act. This will also require an amendment to the Essential Commodities Act.
The authority had also said the department of chemicals and petrochemicals should take up the matter with the ministry of consumer affairs for making appropriate amendments for inclusion of a provision relating to the imposition of compounding fees for petty offences.
None of these recommendations, however, have been accepted by the department.