BS RAWAT
NEW DELHI : The Competition Commission of India (CCI) has levied a fine of Rs. 4,18,404/- on Madhya Pradesh Chemists and Druggists Association (MPCDA) and Rs. 39,142/-on Indore Chemists Association (ICA) -- along with some of their senior officials -- for indulging in anti-competitive trade practices.

The fair trade regulator held both the associations responsible for mandating the requirement of obtaining NOC prior to the appointment as stockiest which resulted in limiting and controlling the supply of medicines and drugs in the state.

Further, the CCI, after taking into account the mitigating issues demonstrated by Himalaya Drug Company and Intas Pharmaceutical Limited, imposed fine on both pharma companies total amounts to Rs. 18,59,58,000- and Rs. 55,59,68,000 respectively.

The CCI, however, did not find any proof of contravention on the part of certain other associations and pharma companies.

In the matter of associations, the commission said it has been proscribing anti-competitive practices of Madhya Pradesh and regional chemists and druggist associations in mandating No Objection Certificate for appointment of stockiest.

The order came on a complaint filed by Madhya Pradesh Chemists and Distributors Federation which was aggrieved by the fact that one of its member, Pharma Agencies, despite having legal license, was denied supply of medicines because of insistence on acquiring no objecrion certificate from the two unions before being appointed stockiest by pharma companies.