Press Esc to close
Thursday 02 October 2014
News updated at 3:43 AM IST
Weather
Max: 29.9°C
Min : 20.7°C
In Bangalore
Sunny day

Pharma dues not collected

Kalyan Ray, New Delhi, Dec 17, 2012, DHNS:

Leading companies owe the government almost Rs 2,500 crore

In the last 15 years, the Centre could recover only one-tenth of the Rs 2,500 crore dues from leading pharmaceutical companies, which sold some medicines at prices higher than the ceiling fixed by the government.

The biggest defaulter is Cipla, which owes almost Rs 1,700 crore to the government. Other biggies in the list include Ranbaxy (about Rs 650 crore), Okasa Pharmaceutical (Rs 90 crore) and Cadila (Rs 56 crore).

As the central government fixes the prices of 74 drugs, it has the power to recover the excess amount charged from the manufacturer, importer or distributor. The money is kept in a fund meant for benefiting the consumers and creating awareness.


Since the inception of National Pharmaceutical Pricing Authority in August 1997, till November 2012, 902 notices involving Rs 2,577 crore were sent to drug companies, out of which only Rs 234 crore was recovered and that too after court orders in many cases.

Recovery of Rs 2,267.75 crore was under litigation, the department of chemicals and fertilisers that governs the NPPA informed the Parliamentary Standing Committee on chemicals and fertiliser, which tabled its report on Monday.

Since district collectors are authorised to recover the money from pharmaceutical firms, 84 cases were referred to the collectors, out of which 30 are under litigation and 47 cases are pending for recovery. Only in seven cases, recovery has been made.

Litigation arise when pharmaceutical companies challenge the price fixed by the government. Inclusion of bulk drugs under price control was also challenged.

Dismissing a previous health ministry survey, which found only 0.046 per cent drugs spurious, the House panel said such random surveys were not sufficient to monitor the extent and check the menace of spurious drugs.

 It asked the department of pharmaceuticals and health ministry to conduct regular survey and random checks in different parts of the country and ensure stringent and quick legal action against the manufacturers of spurious drugs.

Go to Top

Photo Gallery
Nokia India Sales Marketing Director Raghuvesh Swarup launches the new Nokia Lumia ...

Nokia India Sales Marketing Director Raghuvesh Swarup launches the new Nokia Lumia ...

India's Mary Kom is lifted by her coach after she won the gold in women's flyweight boxing ...

India's Mary Kom is lifted by her coach after she won the gold in women's flyweight boxing ...

Bollywood actress Sushmita Sen attends the Durga Puja celebrations in Mumbai ...

Bollywood actress Sushmita Sen attends the Durga Puja celebrations in Mumbai ...

A huge statue of Mahatma Gandhi in Bengaluru a day before its inauguration ...

A huge statue of Mahatma Gandhi in Bengaluru a day before its inauguration ...

Silver medal winner India's Tintu Luka poses at the podium during the medal ceremony ...

Silver medal winner India's Tintu Luka poses at the podium during the medal ceremony ...

Boxer Mary Kom kisses shares a moment with her kid after winning the gold medal ...

Boxer Mary Kom kisses shares a moment with her kid after winning the gold medal ...

Damaged coaches after Krishak Express and Barauni Express collided near Gorakhpur ...

Damaged coaches after Krishak Express and Barauni Express collided near Gorakhpur ...

India's boxer Sarita cries at the podium after refusing to accept the bronze medal ...

India's boxer Sarita cries at the podium after refusing to accept the bronze medal ...

People look at the damaged coaches after Krishak Express and Barauni Express collided ...

People look at the damaged coaches after Krishak Express and Barauni Express collided ...

Indian tennis legend and global ambassador of the sport, Vijay Amritraj addressing during ...

Indian tennis legend and global ambassador of the sport, Vijay Amritraj addressing during ...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523