The Central government has made it mandatory for pharmaceutical companies, distributors and retailers to preserve records related to drug prices and sales for seven years to ensure better compliance with price regulations.
Under the revised rules, if a retailer or distributor is found selling medicines above the government-approved maximum price, the liability of the manufacturing company will be limited to the quantity of stock involved in the violation. The change is aimed at protecting manufacturers from heavy penalties arising due to overcharging or black marketing by intermediaries.
The new provisions place greater responsibility on chemists, wholesalers and distributors to strictly follow notified prices. Companies must inform the trade about any price revision within two weeks by publishing in two national newspapers, issuing supplementary price lists in the prescribed forms, and updating the revised prices on the Drug Price Control Order section of their websites.
With these measures, retailers will no longer be able to claim ignorance of revised prices. Any chemist, distributor or stockist found violating the rules will face direct legal action.