**Executive Summary**
This report details the measures taken by the National Pharmaceutical Pricing Authority (NPPA) to address the overcharging of medicines between FY 2015-16 and FY 2025-26 (up to September 30, 2025). It outlines the recovery of overcharged amounts through Demand Notices, the establishment of state-level monitoring units, and the implementation of digital tools for consumer grievance redressal. Monitoring and recovery are identified as ongoing activities with no fixed time limits.
**Key Points / Main Content**
**Regulatory Enforcement and Recovery**
* The NPPA issues Demand Notices (DNs) to pharmaceutical companies when a prima facie case of overcharging is established.
* Recoveries include the overcharged amount plus applicable interest.
* Between FY 2015-16 and September 2025, 1,021 DNs were issued, resulting in the recovery of Rs. 13,860.93 Lakh across 430 cases.
* Currently, 591 overcharging cases remain pending for recovery.
**Monitoring Infrastructure**
* Price Monitoring & Resource Units (PMRUs) have been established in States and UTs under the 'Consumer Awareness, Publicity and Price Monitoring' (CAPPM) scheme.
* PMRUs are responsible for collecting price data and conducting awareness activities regarding drug pricing.
**Consumer Grievance and Transparency Tools**
* 'Pharma Jan Samadhan' and the Centralized Public Grievance Redress and Monitoring System (CPGRAMS) provide time-bound redressal for complaints regarding pricing, shortages, and non-availability.
* The 'Pharma Sahi Daam' mobile app enables the public to verify ceiling prices for 928 formulations and MRPs for approximately 98,600 medicines.
* A dedicated helpline (1800111255) and email address (monitoring-nppa[at]gov[dot]in) are available for reporting overcharging.
* All official price notifications are published on the NPPA website for public access.
**Impact Analysis**
**Pharmaceutical Companies**
**Impact**
Companies found overcharging are subject to legal action and financial liabilities, including the repayment of overcharged amounts and interest.
**Action Required**
Ensure compliance with ceiling prices and MRP regulations; settle outstanding amounts requested in Demand Notices issued by the NPPA.
**General Public / Consumers**
**Impact**
Consumers benefit from increased price transparency and formal channels to report grievances related to medicine costs and availability.
**Action Required**
Utilize digital platforms like 'Pharma Sahi Daam' to check prices and report instances of overcharging or drug shortages via the NPPA helpline and online portals.
**National Pharmaceutical Pricing Authority (NPPA) / Government**
**Impact**
The authority is responsible for the ongoing administration of the CAPPM scheme, managing PMRUs, and maintaining digital monitoring systems.
**Action Required**
Continue the enquiry into overcharging instances, issue Demand Notices, and manage the recovery of funds as an ongoing regulatory activity.
Key Entities Referenced
National Pharmaceutical Pricing Authority (NPPA): The primary regulatory body responsible for monitoring medicine overcharging, issuing Demand Notices (DNs), and recovering overcharged amounts from pharmaceutical companies.
Consumer Awareness, Publicity and Price Monitoring (CAPPM): A Central Sector Scheme under which Price Monitoring & Resource Units (PMRUs) are established to strengthen drug price monitoring and consumer awareness.
Price Monitoring & Resource Units (PMRUs): State and UT-level units established to collect data on drug prices and conduct activities to create public awareness regarding pharmaceutical pricing.
Pharma Jan Samadhan: An online grievance redressal system that allows consumers to file complaints related to the pricing, shortage, and non-availability of medicines.
Pharma Sahi Daam: A mobile application that provides consumers with real-time access to the ceiling prices and MRPs of thousands of scheduled and non-scheduled medicines.
Ministry of Chemicals and Fertilizers :
Department of Pharmaceuticals
Measures to Check Overcharging of Medicines
Posted On: 20 MAR 2026 2:53PM by PIB Delhi
The National Pharmaceutical Pricing Authority (NPPA) enquires into instance of overcharging brought to
its notice and if a prima facie case of overcharging is established, NPPA initiates necessary action by
issuing Demand Notices (DNs) to such companies to recover the overcharged amount along with
applicable interest. NPPA does not maintain state-wise record of overcharging by pharmaceutical
companies. The year-wise details of number of cases where DNs were issued, DN amount were recovered
and pending cases over the period FY2015-16 to FY2025-26 (till 30.09.2025) is given in the table below:
Details of overcharging cases for medicines
F.Y. Total no. of No. of cases wherein DN amount has No. of cases
DN issued been recovered currently pending
No. of cases No. of cases Recovered Amount No. of Cases
(Rs. in Lakh)
2015-16 245 138 953.26 107
2016-17 118 58 6129.14 60
2017-18 182 56 4274.48 126
2018-19 134 70 786.57 64
2019-20 54 32 377.16 22
2020-21 21 3 9.79 18
2021-22 6 4 341.35 2
2022-23 99 21 452.95 78
2023-24 43 8 29.44 35
2024-25 59 27 172.96 322025-26 (upto 60 13 333.83 47
30.09.2025)
Total 1021 430 13860.93 591
In order to strengthen the price monitoring, Government has established Price Monitoring & Resource
Units (PMRUs) in States and UTs, including Haryana, under the Central Sector Scheme 'Consumer
Awareness, Publicity and Price Monitoring - (CAPPM)'. These PMRUs collect data on prices and also
conduct IEC activities to create awareness among public on pricing related aspects of drugs. NPPA and
consumer/general public are engaged through online platforms like ‘Pharma Jan Samadhan’, which
provides the consumer with an effective and time bound grievance redressal system to deal with
complaints related to pricing, shortage and non-availability of medicines. Further, consumer may also
connect with NPPA through mobile app ‘Pharma Sahi Daam’, and ‘Centralized Public Grievance Redress
and Monitoring System (CPGRAMS)’. Pharma Sahi Daam app lists the ceiling price of 928 formulations
and MRP of approximate 98600 medicines. General public can check the current prices of various drugs
through the app. In addition, NPPA has a helpline 1800111255 and email: monitoring-nppa[at]gov[dot]in,
on which complaints on overcharging of drugs can be registered. Further, all price notifications are
uploaded on the website of NPPA, i.e., www.nppa.gov.in.
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.
This information was given by Minister of State for Chemicals and Fertilizers, Smt. Anupriya Patel, in a
written reply in the Lok Sabha today.
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