Govt considering one-time settlement option in drug overcharging cases

Pharma companies feel that working out an overarching solution for the entire industry is cumbersome and unlikely to work out

The government is actively considering options, including a one-time settlement, to expedite the recovery of dues from drug companies that allegedly overcharged customers for medicines under price control.

The outstanding dues now stand at Rs 5,476.9 crore, of which Rs 4,032.5 crore is stuck in litigation. Recovery has been particularly dismal in the past three years.

The National Pharmaceutical Pricing Authority (NPPA), the country’s drug pricing regulator, sends to pharma companies notices specifying the recovery of overcharged amounts and penalties, along with 15 per cent interest, in accordance with the Essential Commodities Act.

The NPPA, which comes under the Department