Monopolies & Restrictive Trade Practices Commission (MRTPC), New Delhi has issued an order restraining the entire trade and industry from indulging any restrictive trade practices in response to a complaint filed by the Mysore-based wholesaler Sri Ramakrishna Services. Supplies to SRS were stopped by Sandoz under the influence of KCDA and MCDA some time back.
SRS which provided proof of the violations by pharma trade and companies in the country, had asked for general relief to trade against the many restrictive trade practises being practised. In an interim order No. I.A. No. 11 of 2006 in Unfair Trade Practices Enquiry No. 23 of 2006, the Commission stated such practices should be stopped at once by the concerned parties wherever there is evidence to this effect.
The order of the bench was delivered by Justice B.K. Rathi, chairman and M.M.K. Sardana, Member, MRTPC. Responding to the complaint petition filed by SRS under Section 2(0) read with Sections 33, 36-A, 36-B and 37 of the Monopolies and Restrictive Trade Practices Act, 1969 alleging adoption of unfair trade practices by the trade members: Karnataka Chemists & Druggists Association, Bangalore, All India Organization of Chemists & Druggists, Mumbai, Mysore Chemists & Druggists Association, Indian Drug Manufacturers Association, Mumbai, Pharmaceutical and Allied Manufacturers &Distributors Association, Mumbai and Organisation of Pharmaceutical Producers of India, Mumbai and Sandoz a multinational pharma company.
It may be recalled that that Pharmabiz had reported on June 7, 2006 the complaint made by SRS to MRTPC.
Following the allegations levelled by the applicant SRS against three trade bodies KCDA, AIOCD and MCDA, the Commission stated that the latter is restrained from issuing the No Objection Certificate for becoming a stockist or for manufacturers to make supplies to the distributors.
The three trade bodies will also not be able to impose conditions on the stockists and manufacturers and have been asked to strictly abide by rules of the practices in trade. They are also prevented in making any oral or written communication which are in the nature of restrictive trade practises. The trade bodies also had no authority to exclude the non-members from the business or limit their distribution limited to the agents recommended by them. Further, they have been asked to withdraw all the earlier impugned circulars which have been placed to restrict trade practices.
The Commission directed Novartis and Sandoz to start supplying their products to the applicant SRS against demand drafts. The Commission has also issued an order to KCDA, AIODC and MCDA to file their replies.