India's new law tough for price violations

A new law - the Drugs Price Regulation and Control Bill - which is likely to be introduced in India's Parliament at the February budget session next year, is a tough measure against violations of statutory pharmaceutical price control.

A draft cabinet note on the law has already been circulated among India's key federal ministries and state governments. Industry sources said the new legislation proposed by the Ministry of Chemicals and Fertilizers seeks to empower the government to strip a company of its manufacturing licence and seal its production facilities for not complying with the drug price regulations.

The new law would allow the government to levy monetary penalties, which is not allowed under the existing Drug Price Control Order, an executive order under the Essential Commodities Act, and would also replace the DPCO, providing for fines, temporary withdrawals and withholding of marketing approvals of medicines.