FORMAT FOR STATE DRUG CONTROLLER FOR SEEKING INFORMATION FROM THE DRUG COMPANY IN RESPECT OF OVERCHARGING IN THE SALE OF SCHEDULED FORMULATION

F.No.……………………

State Drug Controller

……………………..

……………………..

To,

M/s. (Name of the Company & Address)

……………………………

……..……………………..

Sub: –  DPCO’95 Manufacturing & Marketing of Scheduled Formulation at price higher than the notified price – reg.

Sir,

It has been reported to this office that your company has not been complying the price fixed by NPPA/ Government of India in respect of following scheduled formulation(S):

* In case MRP includes sales tax/ VAT and other levies etc. then the details of the same shall also be furnished.

Under the provisions of DPCO’95, it is mandatory for the manufacturer or importer to carry into effect the price fixed / notified by the NPPA/ Govt. of India time to time within stipulated period of 15 days by issuing revised price list in Form V and to implement the price fixed/ notified in the sale of Scheduled formulations. However, your company has violated the provisions of DPCO’95 by charging the price higher than the price fixed/ notified by the NPPA/ Government.

In view of the above, and without prejudice to the action that may be taken, you are directed to:-

a)Explain the reasons for non-compliance of ceiling prices/notified price.

b)Furnish your consolidated price list in form V for all the products manufactured and / or marketed by your company. It may please be noted that all manufacturers including SSI Unit, are required to submit from V as Para 14 & 15 of DPCO’95.

c)Submit the production and sales details with effect from date of notification till date duly certified by Cost Accountant/ Chartered Accountant as per following format: –

d)Specimen sample strip/pack of the formulations for all batches manufactured and sold during the above period.

You are hereby directed to ensure the compliance of the price fixed / notified by the NPPA/ Govt. by implementing the same in the sale of the said formulations. In this regard, revised price list in Form V shall be furnished to this office.

It is pertinent to mention that under Para 13 of DPCO’95, the amount overcharged by the company in the sale of the scheduled formulation higher than the notified price is recoverable along with the interest @ 15% under section 7A of Essential Commodities Act 1955.

You are directed to furnish reply with complete details within 15 days from the receipt of this letter otherwise this office shall be constrained to initiate appropriate action against your company under the provisions of DPCO’95 and Essential Commodities Act 1955.

Yours faithfully

Drugs Controller

Copy to:           The Director (Monitoring & Enforcement). National Pharmaceutical Pricing Authority, 5^th and 3^rd Floor, YMCA Cultural Centre Building, 1 Jai Singh Road, N. Delhi – 110001.