Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) whether the Government has issued any notices to drug manufacturers regarding non-compliance of pharmaceutical norms during the last three years and the current year;
(b) if so, the details of such notices issued during the said period;
(c) the details of the outcome in this regard; and
(d) the details of action taken/likely to be taken against such drug manufacturers?
MINISTER IN THE MINISTRY OF CHEMICALS & FERTILIZERS AND MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION (SHRI D. V. SADANANDA GOWDA)
(a) to (d): A statement is laid on the Table of the House.
Statement referred to in reply to Lok Sabha Starred Question No. *16 for answer on 11/12/2018 regarding Notices to Drug Manufacturers.
(a) to (c): Yes, Madam. The details of notices issued to pharmaceuticals companies for non-compliance of Drugs (Prices Control) Order (DPCO) are as under:
Year No. of Demand Notices issued Amount of demand notices (In Crore)
Amount recovered (In Crore)
2015-2016 263 931.63 12.32
2016-2017 137 333.97 302.08
2017-2018 221 704.12 148.42
2018-2019 (till Sept.2018) 125 194.81 17.43
The detailed list of overcharging cases where demand notices have been issued is available on the website of National Pharmaceutical Pricing Authority (NPPA) i.e. www.nppaindia.nic.in.
(d): Action for recovery of the overcharged amount is taken as per the provisions of DPCO, 1995 and DPCO, 2013. However, in some cases, the demands raised for overcharging have been challenged in courts. NPPA, as an ongoing process, pursues these court cases. Where the demand raised by NPPA has not been challenged in the court and the concerned company does not deposit the amount of demand, the matter is referred to the respective District Collector for recovery of the overcharged amount as arrears of land revenue under Essential Commodities Act, 1955. The cases referred to Collectors are also followed up by NPPA.
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