Idma and OPPI have challenged the fresh notices issued by the government calling for information in respect of the drug price-equalisation amount (DPEA) claims. DPEA, which was replaced by the Drug Price Control Order (DPCO) in 1987, is concerned with pharmaceutical companies alleged to have benefited from any price reduction on bulk drugs after prices were finalised by the government.

According to the government, the companies should pay back the difference, which was an unintended profit, in order to protect the cause of bulk drugs falling under the Essential Commodities Act.

In the petition, Idma has submitted that thegovernment has gone ahead issuing innumerable notices to the members of the petition purporting to direct them to furnish details for determining the liability of the concerned company despite clear-cut provisions of the DPCO, 1979, 1987 and 1995.

According to the petition, "it is abundantly clear that whether under the DPCO only those amounts which have been actually determined to be due and payable by a manufacturer and actually accrued during the continuance of the DPCO, 1979 could be recovered form the manufacturers concerned for deposit in the DPEA."

While seeking ad-interim reliefs, Idma has alleged that in several cases, no price fixation of the bulk drug in question had been announced or communicated by the government. In its reply, the government has stated that the selling prices of essential bulk drugs are controlled by the government and no increase will be permitted without its prior approval.