Govt recovers just 7.8% of Rs 4,928 cr drug overcharging fine

The government has been able to recover just Rs 386.07 crore as fine, a mere 7.83 per cent of the total Rs 4,928.09 crore which has been slapped on drug companies for overcharging.
"As on March 31, 2016, the National Pharmaceutical Pricing Authority (NPPA) has recovered Rs 386.07 crore against total demanded amount of Rs 4,928.09 crore, which is about 7.83 per cent," Minister of State for Chemicals and Fertilisers Hansraj Gangaram Ahir said in a written reply to the Lok Sabha today.
Giving details of the unrecovered amount, the minister said cases under litigation currently amounted to Rs 3,701.21 crore while recovery cases pending with collectors stood at Rs 72.26 crore. Besides, Rs 5.41 crore are under BIFR/official liquidator.

Ahir said action for recovery of the overcharged amount is taken as per the provisions of Drugs (Prices Control) Order, 1995 and DPCO, 2013.
"However, in some cases, the demands raised for overcharging have been challenged in courts. NPPA is actively pursuing these court cases," he added.
If the company concerned does not deposit the amount of demand, the matter is referred to the respective collector for recovery, he said.
"The cases referred to collectors are also followed up on a regular basis by issuing reminders.