F.No. 17(11/Div.IV/2000/NPPA

National Pharmaceutical Pricing Authority
Department of Chemicals & Petrochemicals
Ministry of Chemicals & Fertilizers
Government of India
Ph: 3682148 Fax: 3682146
Website: www.nppaindia.com

2E/21, Jhandewalan Extn.,
Link Road, New Delhi-55
Dated : 06.09.2000

PRESS NOTE

1. A writ petition was filed by Bulk Drug Manufacturers’ Association (BDMA) versus Union of India (W.P. No.5578/1997) against the inclusion of the following 8 bulk drugs in the first schedule of Drug (Prices Control) Order, 1995, DPCO’95.

1. Ciprofloxacin
2. Cefadroxil
3. Cloxacillin
4. Norfloxacin
5. Salbutamol Sulphate
6. Sulphamethaxazole
7. Theophylline
8. Trimethoprim

2. During the course of hearing the Hon’ble High Court Delhi passed an interim order dated 7.1.99 to the effect that “no punitive action be taken against the members of BDMA based upon inclusion of 8 bulk drugs within the ambit of price control”. Due to the effective follow up action by NPPA, the interim order dated 7.1.99 mentioned above was vacated by the court on 18.7.2000.

3. Consequent to the vacation of interim order, the statutory functions of NPPA with regard to the 8 bulk drugs under dispute and their related formulations have been restored and reconfirmed. In this connection a letter was issued to the Bulk Drug Manufacturers’ Association, directing the Association to advise all their members to adhere to the prices notified by the Government of India/NPPA in respect of the scheduled bulk drugs under dispute and their formulations. The BDMA in its letter dated 26.7.2000 has informed NPPA that they have already advised the member units to comply with the notified prices in respect of the drugs \mentioned above and their formulations.

4. It has been observed that many members of the Association have been charging more than the prices notified by the Govt. of India/NPPA in respect of the bulk drugs mentioned above and their formulations. In all these cases NPPA is empowered to recover the amount overcharged by all the member companies under paragraph 13 of DPCO’95. NPPA has already issued notices to most companies who have overcharged and is issuing to the balance directing the concerned companies to deposit the overcharged amount with NPPA/ Government of India. It is estimated by NPPA that amount overcharged by various companies from the consumers is very substantial and this amount is required to be deposited with NPPA/Government of India. Notices are being issued to all formulators of products based upon above mentioned bulk drugs and cover firms in major, medium or small sectors.

5. In addition, the vacation of the stay order has also been brought to the notice of all the State Drug Controllers with the request to implement and enforce the notified prices and to report all the cases of overcharging to NPPA including the 8 bulk drugs under dispute and their formulations.

(M.S. Balasubramanian)
Director