Delhi HC quashes notices to healthcare firms on overcharging for drugs, medical devices

The Delhi High Court has quashed several demand notices of the National Pharmaceutical Pricing Authority (NPPA) by which Bharat Serums and Vaccines and Bard Healthcare India were held guilty of overcharging on drugs and medical devices.

Regarding NPPA’s direction in the notices to deposit the overcharged amount, the high court asked the authorities to undertake a fresh exercise of re-computation of the amounts, if any payable, by the two companies bearing in mind the conclusions recorded in the judgement.

“Accordingly, and for all the aforesaid reasons, the writ petitions shall stand allowed. The impugned orders dated July 5, 2018, and June 26, 2018, pertaining to Bharat Serums and the order dated October 22, 2020, as well as the demand notice dated November 7, 2019, relating to Bard, shall stand quashed,” Justice Yashwant Varma said in the 90-page verdict.

The high court allowed the separate petitions by Bharat Serums and Bard challenging the demand notices.

It further said while computing the ultimate liability of the individual petitioners, NPPA shall also take into consideration any deposits that may have been made by the petitioners during the pendency of the present litigation and pursuant to the orders which stood impugned here.

The petitions challenged the demand notices issued by NPPA under the Drugs (Price Control) order, 2013, holding the petitioner companies guilty of overcharging and thus liable to deposit the overcharged amount together with interest thereon.

The two demand notices issued to Bharat Serums relate to non-scheduled formulations named Histoglob and U-Tryp. PTI