Under the existing
orders of 2nd March, 1995 (S.O.134 E), SSI units are
exempt from fixation of price under para 8 of Drugs (Price Control)
Order 1995 (DPCO 1995) though they have to follow ceiling prices
fixed under para 9 of the order. The exemption, however, is not
available to those SSI units which do not satisfy the conditions
stipulated in the order of 2nd March 1995. One of the
conditions is that it should be an independent unit/company and
exemption is not available to a subsidiary of or owned or controlled
in any manner by any other undertaking which is not so exempted
from the provisions of the DPCO 1995. However, there is a general
suspicion that many organized sector companies including MNCs
are misusing the above exemption order by transferring their known
brands of scheduled formulations to their directly or indirectly
controlled SSI units thereby attempting to evade free control.
On such case of suspected
misuse by M/s Johnson and Johnson through one of its wholly owned/controlled
subsidiary, namely, M/s N.R. Jet Enterprises Ltd. which came to
the notice of National Pharmaceutical Pricing Authority (NPPA),
was referred to the Director of Industries, Maharashtra. The Industries
Department after verification of facts has cancelled the SSI registration
granted to the unit. The Central Bureau of Investigation (CBI)
is also enquiring into the misuse of these provisions.
