New Delhi, Nov 14 (IANS): The Delhi High Court has clarified the government's authority regarding the Maximum Retail Price (MRP) of non-scheduled drug formulations.

The court rejected the argument that non-scheduled drugs are outside the purview of the price control regime under DPCO 2013, asserting that they are part of a price "monitoring" mechanism envisaged under National Pharmaceuticals Pricing Policy (NPPP) 2012.

It drew a contrast with DPCO 1995, highlighting that the power to fix and revise prices for non-scheduled formulations had intentionally been eliminated under DPCO 2013.

The court clarified that DPCO 2013 only applies to drug formulations, not bulk drugs, and that Para 20 is not a penal provision but part of a price monitoring system.

The judgement said that the consequences for a transgression by a manufacturer include depositing the overcharged amount with interest and reducing the MRP of the formulation.

The court applied a literal construction rule, interpreting the words 'preceding' and 'next' in Para 20 to mean the 12 months immediately prior/after the date of MRP increase.

Rounding-off of MRP was deemed applicable to non-scheduled formulations, with the benefit limited to two decimal points, in line with NPPA's Minutes of Meeting dated April 12, 2016.