Torrent Pharmaceuticals on Friday said it has received a demand notice of Rs 6.32 lakh from the National Pharmaceutical Pricing Authority (NPPA). The company has received the notice from NPPA under paragraph 15 of Drug Price Control Order 2013, imposing a penalty of Rs 6,32,689.

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The demand notice is for the launch of a new drug wherein price approval was taken after the launch, the drug firm said in a regulatory filing.

The said order does not have any material financial impact on the company, it added.

The NPPA is mandated to fix/revise the prices of controlled bulk drugs and formulations and to enforce prices and availability of medicines in the country.

It also monitors the prices of decontrolled drugs in order to keep them at reasonable levels.

The regulator implements and enforces the provisions of the Drugs (Prices Control) Order.

It is also entrusted with the task of recovering amounts overcharged by manufacturers for controlled drugs from consumers.