As per the complaitn, five entities, including pharmaceutical company Cipla and a state-level trade body are allegedly engaged in anti-competition practices in granting stockist licence for medicines in Himachal Pradesh
Competition Commission of India (CCI) is probing allegations of anti-competitive practices against five entites Cipla, Macleods Pharmaceutical, FDC Ltd as well as trade body Himachal Pradesh Society of Chemist & Druggist Alliance and its President.
The complaint has been filed against the five entities for allegedly engaging in anti-competition practices in granting stockist licence for medicines in Himachal Pradesh.
Last month, the CCI in its order had said, "...The Commission is of the opinion that there exists a prima facie, case to direct the Director General to cause an investigation into the matter".
The fair trade regulator observed that Himachal Pradesh Society of Chemist & Druggist Alliance appears to be controlling and regulating the appointment of stockist-ship of each and every pharmaceutical company in Himachal Pradesh.
As per a complaint by filed by one Rohit Medical Store, the Society compelled the pharmaceutical firms to grant stockist-ship in the state to those persons who had obtained NOC from it.
The complaint alleged that it was not being granted stockist-ship of Macleods Pharmaceutical, FDC and Cipla due to the condition imposed to obtain NOC from the Society. In its submissions to CCI the complainant also placed on record a CD wherein the President of the Society in a conversation with employees of Macleods was emphasising that NOC was a must.
"The evidence placed on record...Shows that no one can be appointed as the stockist of any pharmaceutical company in Himachal Pradesh without the NOC (No objection Certificate) of Himachal Pradesh Society of Chemist & Druggist Alliance," CCI noted.
The regulator has asked the Director General to submit his report within a period of 60 days from the communication of this order.
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