India's drug pricing authority might be on the brink of unveiling an amnesty scheme to resolve pending cases of overpricing, sources have told CNBC Awaaz, thus clearing the path for the recovery of thousands of crores of rupees for some pharma companies.
The move is in response to over 2,200 registered cases of alleged overpricing, involving major players like
Cipla,
Sun Pharma and
Lupin, as well as smaller firms within the pharmaceutical landscape. Sources indicate that these cases collectively amount to a staggering sum of nearly Rs 13,000 crore. The figure encompasses not only the primary overpricing amounts but also accrued interest and penalties.
The
NPPA, which oversees pharmaceutical pricing regulations in India, serves as a watchdog for such financial discrepancies in the industry.
While the specifics of the amnesty scheme are yet to be officially disclosed, experts suggest that it could potentially bring substantial relief to the accused pharmaceutical companies. There is a possibility of the accrued interest and penalties being waived, thereby mitigating some of the financial burdens these companies currently face.
According to the sources, there are instances where pharmaceutical companies have exceeded the regulated price points for essential drugs, resulting in unjust profits.
In certain cases, apart from the principal amount that exceeds the
set drug prices, the authority also imposes additional interest and penalties.
It is projected that the government could recover about Rs 5,000-6,000 crore from the amnesty scheme.
First Published: Aug 9, 2023 2:39 PM IST
