These cells will be formed in coordination with state governments and work in association with the local drug controller.
The idea is to keep a close watch on real-time price movements, the maximum retail price of medicines and their availability.
Currently, a lack of field inspectors does not allow the regulator to keep a tab on pharma companies or retailers flouting price caps.
Recovery of overcharged amounts also becomes difficult for the regulator without a physical presence in a state.
NPPA says companies have overcharged consumers a total of Rs 417 crore (Rs 4.17 billion) on sale of medicines in 2014 so far.
It has recovered only Rs 67 crore (Rs 670 million)
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