SC dismisses Sun Pharma's plea against NPPA's demand notice of Rs 4.65 cr for overcharging drug
Supreme Court has dismissed pharmaceutical major Sun Pharma's plea against a demand notice of Rs 4.65 crore raised by National Pharmaceutical Pricing Authority (NPPA) to recover the amount overcharged by the company for anti-bacterial infection drug Roscilox. Sun Pharma has challenged the NPPA's demand notices of 2005. The company was directed to deposit the overcharged principal amount of Rs 2,15,62,077 for the period April 1996 to July 2003 and the interest on this amount (Rs 2,49,46,256) for Roscilox, a brand of a Cloxacillin-based drug formulation
The amount charged was more than that fixed by the government under the provisions of the Drugs (Price Control) Order, 1995 (DPCO).
The pharma company has already paid a sum of Rs 1.25 crore towards the demand made by the NPPA.
A bench of Justices Sanjay Kumar and Augustine George Masih upheld the order of Delhi High Court August 6, 2014 by which the claim of the pharma company was dismissed.
Supreme Court upholds NPPA's Rs 4.65 cr recovery from Sun Pharma for drug price violation
«We, therefore, find no error committed by the high court in rejecting the claim of the appellant. The appeal is devoid of merit and is accordingly dismissed. Order of status quo dated November 10, 2014 shall stand vacated,» it ordered.
It noted that the NPPA sought recovery of the excess amount under Paragraph 13 of the DPCO, which deals with 'power to recover overcharged amount'.
The bench said though an attempt was made before the court by the counsel for the
