Drug price regulator National Pharmaceutical Pricing Authority (NPPA) has issued directions to enforcement agencies to recover around Rs 116 crore from 31 pharmaceutical firms, including Dr Reddy’s Lab, Alkem, Cadila Healthcare and Wyeth, for overcharging.
According to a notification posted on the regulator’s website, NPPA has referred cases of 31 pharmaceutical firms till March 2009 to collectors of various states.
The directions have been issued under the Drug Price Control Order (DPCO 1995), under which if a manufacturer sells a medicine at a price higher than that approved for the product the manufacturer is liable for prosecution under Essential Commodities Act, 1955.
The companies are also liable to deposit the amount accrued due to charging of prices higher than those fixed or notified by authorities with the government.
When contacted Cadila Healthcare officials declined to comment on the issue while other pharmaceutical companies could not be contacted for comments.