Chennai, January 31, 2025 – TTK Healthcare Limited (BSE: 507747, NSE: TTKHLTCARE) has disclosed a demand notice from the National Pharmaceutical Pricing Authority (NPPA) under the Drugs (Price Control) Order, 2013 (DPCO 2013). The notice pertains to alleged overcharging on orthopaedic implants classified as "Drugs" under the Drugs and Cosmetics Act, 1940.
Key Highlights of the Demand Notice
- Authority Involved: Director (Medical Devices), Department of Pharmaceuticals, NPPA, Ministry of Chemicals & Fertilizers, Government of India.
- Date of Notice: January 30, 2025.
- Total Amount Demanded:₹49,28,419, comprising:
- Overcharged amount: ₹19,87,300.
- Interest (15% p.a.): ₹29,41,119.
Background of the Issue
The issue stems from TTK Healthcare’s revision of the Maximum Retail Price (MRP) of its orthopaedic implant set in September 2014:- The original MRP was ₹90,000 for a set of four components.
- A 10% permissible price increase would have set the new MRP at ₹99,000.
- However, for operational convenience, the company rounded off the price to ₹1,00,000.
- NPPA treated this rounding-off amount of ₹1,000 as overcharging, citing a violation under Para 20 of DPCO 2013.