Lok Sabha Question No. 2668 (UNSTARRED), answered on 2016-08-02
Subject: Notice to Pharma Companies
Ministry: CHEMICALS AND FERTILIZERS
Asked by: VEENA DEVI

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF PHARMACEUTICALS

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## LOK SABHA

## UNSTARRED QUESTION NO. 2668

TO BE ANSWERED ON 02 nd  August, 2016

## Notice to Pharma Companies

## 2668.  SHRIMATI VEENA DEVI:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a) whether  notices  have  been  issued  to  the  pharmaceutical  companies  which  neglect  the price policy announced by the Government in the country;
- (b) if so, the details thereof; and
- (c) the  names  of  the  pharmaceutical  companies  which  are  charging  more  than  the  fixed prices of drugs from the consumers?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS,  MINISTRY  OF  SHIPPING  AND  MINISTRY  OF  CHEMICALS  AND FERTILIZERS (SHRI MANSUKH L. MANDAVIYA)

- (a): Yes Madam,
- (b): Since  inception  of  National  Pharmaceutical  Pricing  Authority  (NPPA),  1435  demand notices  have  been  issued  to  pharmaceutical  companies  for  overcharging  on  the  sale  of formulations as on 31.05.2016 {(1275 cases under Drugs (Prices Control) Order, 1995 (DPCO 1995)  &  160  cases  under  Drugs  (Prices  Control)  Order,  2013  (DPCO  2013)}.  These  demand notices  are  for  a  total  amount  of  Rs.4929.48  crore  (Rs.4853.68  crore  under  DPCO  1995  & Rs.75.80  crore  under  DPCO  2013).  Rs.386.85  crore  has  been  deposited  by  the  companies  to Government  (Rs  317.86  crore  under  DPCO  1995  &  Rs  68.99  Core  under  DPCO,  2013).  An amount of Rs 3715.74 crore is under litigation.
- (c): The Detailed list of overcharging cases where demand notices have been issued uploaded on  NPPA  website  www.nppa.nic.in.  Name  of  the  companies,  in  descending  order  of  pending overcharged amount (under DPCO, 1995 and DPCO, 2013 are annexed.

| Summary of Top 10 Companies in respect of overcharging cases under DPCO 1995   | Summary of Top 10 Companies in respect of overcharging cases under DPCO 1995   | Summary of Top 10 Companies in respect of overcharging cases under DPCO 1995   | Summary of Top 10 Companies in respect of overcharging cases under DPCO 1995   | Summary of Top 10 Companies in respect of overcharging cases under DPCO 1995   |
|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|
| Sl. No.                                                                        | Name of Company (M/s.)                                                         | Total overcharged amount (Rs. in crore)                                        | Recovered amount since inception (Rs. in crore)                                | Outstanding amount (Rs. crore)                                                 |
| 1                                                                              | M/s. Cipla Ltd.                                                                | 576.67                                                                         | 0                                                                              | 576.67                                                                         |
| 2                                                                              | M/s Cipla Ltd.                                                                 | 471.03                                                                         | 0                                                                              | 471.03                                                                         |
| 3                                                                              | M/s Cipla Ltd.                                                                 | 88.49                                                                          | 0                                                                              | 88.49                                                                          |
| 4                                                                              | M/s Cipla Ltd.                                                                 | 372.64                                                                         | 0                                                                              | 372.64                                                                         |
| 5                                                                              | M/s Cipla Ltd.                                                                 | 184.57                                                                         | 0                                                                              | 184.57                                                                         |
| 6                                                                              | M/s Cipla Ltd.                                                                 | 143.82                                                                         | 0                                                                              | 143.82                                                                         |
| 7                                                                              | M/s Cipla Ltd.                                                                 | 901.01                                                                         | 0                                                                              | 901.01                                                                         |
| 8                                                                              | M/s Cipla Ltd.                                                                 | 89.91                                                                          | 0                                                                              | 89.91                                                                          |
| 9                                                                              | M/s Johnson &Johnson Pvt. Ltd.                                                 | 436.07                                                                         | 0                                                                              | 436.07                                                                         |
| 10                                                                             | M/s Johnson &Johnson Pvt. Ltd.                                                 | 196.2                                                                          | 0                                                                              | 196.2                                                                          |
|                                                                                | Total                                                                          | 3460.41                                                                        | 0                                                                              | 3460.41                                                                        |

| Summary of Top 10 Companies in respect of overcharging cases under DPCO 2013.   | Summary of Top 10 Companies in respect of overcharging cases under DPCO 2013.   | Summary of Top 10 Companies in respect of overcharging cases under DPCO 2013.   | Summary of Top 10 Companies in respect of overcharging cases under DPCO 2013.   | Summary of Top 10 Companies in respect of overcharging cases under DPCO 2013.   |
|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| Sl. No.                                                                         | Name of Company (M/s.)                                                          | Total overcharged amount (Rs. in crore)                                         | Recovered amount since inception (Rs. in crore)                                 | Outstanding amount (Rs. in crore)                                               |
| 1                                                                               | M/s. Biological E. Ltd.                                                         | 33.28                                                                           | 8.32                                                                            | 24.96                                                                           |
| 2                                                                               | M/s Franco Indian Pharmaceuticals Pvt. Ltd                                      | 8.96                                                                            | 0.00                                                                            | 8.96                                                                            |
| 3                                                                               | M/s Reliance Life Sciences.                                                     | 4.10                                                                            | 0.00                                                                            | 4.10                                                                            |
| 4                                                                               | M/s Akumentis Healthcare.                                                       | 3.72                                                                            | 0.00                                                                            | 3.72                                                                            |
| 5                                                                               | M/s Neon Laboratories Ltd.                                                      | 2.89                                                                            | 0.00                                                                            | 2.89                                                                            |
| 6                                                                               | M/s IPCA Labs Ltd.                                                              | 2.32                                                                            | 0.00                                                                            | 2.32                                                                            |
| 7                                                                               | M/s EncubeEthicals/ Golderma India                                              | 2.01                                                                            | 0.00                                                                            | 2.01                                                                            |
| 8                                                                               | M/s Abbott Healthcare Pvt Ltd.                                                  | 1.60                                                                            | 0.00                                                                            | 1.60                                                                            |
| 9                                                                               | M/s Abbott Healthcare Pvt Ltd.                                                  | 1.21                                                                            | 0.00                                                                            | 1.21                                                                            |
| 10                                                                              | M/s Tidal Labs Pvt. Ltd                                                         | 1.00                                                                            | 0.00                                                                            | 1.00                                                                            |
|                                                                                 |                                                                                 | 61.09                                                                           | 8.32                                                                            | 52.77                                                                           |