NPPA Ramps Up Drug Price Enforcement: Demand Notices Surge Four-Fold, Recoveries Jump Seven-Fold in FY 2025-26
核心洞察
India's National Pharmaceutical Pricing Authority (搜索) raised overcharging demands of Rs. 72.20 crore in FY 2025-26, nearly four times the Rs. 14.52 crore raised in the previous fiscal year.
Total amount realised reached Rs. 164.47 crore, a seven-fold increase from Rs. 20.54 crore in FY 2024-25, though Rs. 8,447.4 crore in cumulative demands remains outstanding.
The government amended the DPCO 2013 to refine overcharging liability provisions and integrated two digital platforms into a unified Pharma Sahi Daam interface for consumer price verification and complaints.
The National Pharmaceutical Pricing Authority (搜索) (NPPA) has markedly intensified its enforcement of drug pricing regulations during the fiscal year 2025-26, recording a nearly four-fold increase in demand notices for alleged overcharging and a seven-fold surge in amounts recovered compared to the previous year, according to data released by the Authority.
During FY 2025-26, the drug price regulator raised demands on overcharged prices, including interest, amounting to approximately Rs. 72.20 crore, compared to Rs. 14.52 crore in the prior fiscal year. The total amount realised during the period reached Rs. 164.47 crore — inclusive of recoveries from both current-year demands and outstanding prior demands — a dramatic increase from the Rs. 20.54 crore realised during FY 2024-25.
Of the Rs. 72.20 crore demanded during the year, Rs. 27.07 crore has been recovered, leaving Rs. 45.13 crore outstanding. The Authority charged 133 cases on alleged overcharging, up from 107 cases in the previous year.
Cumulative Overcharging Landscape
As of March 2026, the NPPA has cumulatively charged 2,732 cases of overcharging, with total demanded amounts — including interest where updated — reaching Rs. 10,029.8 crore. Of this, Rs. 1,582.4 crore has been realised, while approximately Rs. 8,447.4 crore, representing over 84% of the total demand, remains outstanding.
Litigation remains the single largest barrier to recovery. Approximately Rs. 5,872.6 crore — nearly 70% of the outstanding amount — is tied up in cases contested by pharmaceutical companies in courts or referred to collectors. An additional Rs. 200 crore in demands has been referred to collectors and is pending recovery, while roughly Rs. 5.5 crore is pending with the Board for Industrial and Financial Reconstruction (BIFR) or official liquidator. The amount pending for realisation outside of litigation, collector referrals, and liquidator proceedings stands at approximately Rs. 2,369.3 crore.
At the close of FY 2024-25, the cumulative overcharged amount demanded was Rs. 9,950 crore, with 85.7% (Rs. 8,531.2 crore) outstanding.
Regulatory Framework and Recent Amendments
The NPPA monitors prices of both scheduled and non-scheduled medicines under the Drugs Prices Control Order (DPCO), 2013. When a prima facie case of overcharging is established, the Authority issues Demand Notices (DNs) to recover the overcharged amount along with applicable interest.
Minister of State for Chemicals and Fertilizers, Anupriya Patel (搜索), informed the Lok Sabha in March 2026 that between FY 2015-16 and September 30, 2026, a total of 1,021 DNs were issued, with approximately Rs. 138.6 crore recovered across 430 cases. "Monitoring of prices of drugs and action for recovery of overcharged amount is an ongoing activity and therefore, no time limits can be set for the same," Patel stated in a written reply.
The Centre has recently notified amendments to the DPCO, 2013, introducing several key changes. Under Paragraph 14(2), a new proviso limits manufacturer liability for overcharging to the quantity of stock traded through the distributor or retailer found to have effected such overcharging, provided the manufacturer has historically complied with price revisions.
Amendments to Paragraph 15(2) now allow any existing manufacturer launching the same new drug within twelve months of retail price fixation to proceed without applying for prior price approval, though they must intimate launch details via a newly introduced Form-1A within one month. Failure to comply renders the manufacturer liable for the overcharged amount plus interest and penalty.
Under Paragraph 24(1), the amendment clarifies that overcharged amounts shall be calculated solely on stock handled by each retailer, distributor, or stockist found selling above the ceiling price plus local taxes for that specific batch, contingent on the manufacturer following prescribed price revision practices.
Digital Integration for Consumer Empowerment
In June, the NPPA announced the integration of two digital platforms — Pharma Jan Samadhan and Pharma Sahi Daam — into a single unified interface under the Pharma Sahi Daam banner. The consolidated platform enables citizens to check prices of scheduled and non-scheduled medicines and lodge pricing complaints through one digital portal. While both initiatives were previously integrated at the mobile application level, they operated through separate web portals.
To further strengthen price monitoring, the government has established Price Monitoring & Resource Units (PMRUs) across states and union territories under the Central Sector Scheme for Consumer Awareness, Publicity and Price Monitoring (CAPPM). These units collect pricing data and conduct information, education, and communication activities to enhance public awareness of drug pricing regulations.