The Kerala High Court received information from the Kerala Medical Services Corporation Ltd (KMSCL) stating that it was owed Rs 90.88 crore by the state government. This came in response to a pharmaceutical company’s complaint regarding delays in payments for medicines supplied under the Karunya Community Pharmacy project. Justice Devan Ramachandran expressed concern over this situation, remarking that if the assertion by KMSCL was accurate, it indicated a troubling state of affairs. The court directed the state government’s lawyer to gather specific instructions on KMSCL’s claim and report back by the next hearing on March 19. Additionally, the court instructed KMSCL to engage in discussions with the petitioner pharmaceutical companies to explore possible ways to settle their claims.
Sun Pharma, represented by senior advocate Jaju Babu, filed a plea seeking directions for KMSCL to clear pending bills amounting to approximately Rs 9.5 crore for medicines supplied until December 31, 2023. The court was informed that during the pendency of the petition, KMSCL had paid Rs 4.27 crore towards the pending bills, leaving around Rs 5 crore outstanding. Sun Pharma alleged that KMSCL frequently delayed payments despite assurances of settling bills within 45 days of medicine supply, causing financial losses to the company. Despite this, Sun Pharma continued supplying medicines due to its moral obligation to ensure uninterrupted patient care.
Sun Pharma highlighted the significant role of the Karunya Community Pharmacy, the state’s largest pharmacy retail chain with 52 outlets, claiming a profit margin of 7% and above for most drugs. The company emphasized that its sales were strictly on a cash and carry basis, without credit facilities, and suggested that proper revenue management could prevent the accumulation of substantial arrears and pending dues. The delay in payments from KMSCL was causing financial strain on Sun Pharma, despite its commitment to serving patients without interruption.
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