The Tamil Nadu Pharmaceutical Distributors Association (TNPDA) has complained to the Monopolies and Restrictive Trade Practices Commission (MRTPC), New Delhi, against two of the leading pharmaceutical manufacturers associations and the All India Organisation of Chemists and Druggists (AIOCD), allegedly for denying business to its members and for ‘disturbing’ the organization and its members.
The complaint, filed two weeks ago, is against the Indian Drug Manufacturers Association (IDMA), Organisation of Pharmaceutical Producers of India (OPPI), AIOCD and Tamil Nadu Chemists and Druggists Association (TNCDA) - the Tamil Nadu branch of AIOCD.
The spokesperson of TNPDA told Pharmabiz.com that this was necessitated due to continued harassment of its members for sometime by the accused, following a directive from the Coimbatore Judicial Magistrate Court, about three months ago. TNPDA and one of its members had approached the Coimbatore court against Lupin Ltd. for denying business to the complainants. The court directed the complainants to approach MRTPC for settling such trade related issues. In a related incident, another TNPDA member had filed a suit against Merck Ltd. with the Thenkasi magistrate court about a year ago with the same allegations, and obtained an injection against the company, said the source.
When enquired what kind of harassment the TNPDA members were receiving from the accused, the source elaborated – “For example, I represent a particular company as its distributor in Tamil Nadu. The accused (mainly TNCDA and AIOCD) pressurize the companies to deny me business and give it to some other distributor. Further, they try to poach our members to join their organization.”
He claimed TNPDA has a membership of about 1000 distributors and they represent 70 per cent of the stockists in 15 districts of the state. TNCDA, the AIOCD affiliate organization also claims to have membership in all the districts of the state.
MRTP Commission is a quasi-judicial body under the Department of Company Affairs established under Section 5 of the Monopolies and Restrictive Trade Practices Act, 1969, to discharge functions as per the provisions of the Act. The main function of the MRTP Commission is to enquire into and take appropriate action in respect of unfair trade practices and restrictive trade practices. In regard to monopolistic trade practices the Commission is empowered under section 10(b) to inquire into such practices (i) upon a reference made to it by the Central Government or (ii) upon its own knowledge or information and submit its findings to Central Government for further action.