Coming down heavily on the Department of Pharmaceuticals (DoP), government of India and the various state drug regulatory bodies for their deliberate lethargy to control the violators of drugs laws, the All India Chemists & Distributors Federation (AICDF) has alleged that several drugs manufacturing companies are not supplying their products to their members and indulging in anti-competitive activities.
Citing a case of violation in West Bengal, the all India general secretary of the Federation, Joydeep Sarkar from Kolkata said, the Ahmadabad based drug major Torrent Pharmaceuticals, after its acquisition of branded formulations business of Elder Pharma, has stopped supply of their products to the members of AICDF in West Bengal and in several other states. He wanted the department of pharmaceuticals and other state regulatory bodies to break their deliberate silence and resort to actions as per law. He said no stockist of Elder Pharma in Kolkata is getting supplies from Torrent.
Torrent Pharmaceuticals acquired the branded domestic formulations business of Elder Pharmaceuticals in India and Nepal for Rs.2004 crore in December last year.
While speaking to Pharmabiz, Joydeep has alleged that Torrent has taken such a negative and illegal act because of the incessant compulsion and restriction from the national trade body, All India Organisation of Chemists & Druggists (AIOCD). He said despite several penal actions initiated against the organisation and its state bodies by Competition Commission of India (CCI), AIOCD is still continuing the anti-competitive activities. According to him, the drug regulatory mechanism in the national and state levels are not duty bound and turning blind eyes towards the unethical and illegal business practices in the medicine trade sector.
CCI, the fair trade watchdog, had in April 2013 imposed a fine of Rs.47. 41 lakh on AIOCD for their alleged indulgence in anti-competitive practices. After two months, the Commission imposed a penalty of Rs.18.38 crore on Bengal Chemist and Druggist Association (BCDA), the affiliate of AIOCD, citing same reasons.
Further, in December last the Commission again gave admonition to the all India trade body, its affiliates- all Kerala Chemists & Druggists Association (AKCDA), Assam drug leaders association (ADDA) and Barpeta drugs dealers association in Assam for indulging in unfair trade practices.