Following a complaint lodged by a Kozhikodu-based wholesale dealer, Sunanda Associates, the drugs control department in Kerala has directed the intelligence wing of the department to inquire into the situations caused for the discontinuation of supply of medicines to the dealer by the Mumbai-based manufacturing firm Glenmark Pharmaceuticals Ltd.
According to Kerala drugs controller B Hariprasad, stringent action would be taken against all kinds of violations by traders or manufacturers who engage in unfair trade practices. He said the distribution channels of Glenmark will be screened following the complaint.
Sources from the wholesalers’ association, Alliance of Pharmaceutical Traders (APT), Kerala informed Pharmabiz that Glenmark has given an offer letter to Sunanda Associates asking them to procure one No-Objection Certificate from the Kerala branch of AIOCD in order to appoint them as a stockist in Kozhikodu district in Kerala. Subsequently, the dealer approached AKCDA asking for reasons why the manufacturing firm is insisting for an unwanted document, to which the trade body has not responded so far.
APT sources said that Glenmark had started supply of their products in June this year after receiving a good sum as investment, but immediately they stopped supply for reason of non-production of NOC from AKCDA. They said the letter given by the manufacturing company is a blatant violation of the order of the trade regulator, Competition Commission of India (CCI).
While briefing Pharmabiz about the unethical trade practices committed by Glenmark, APT president CP Kunhimoidu said the company’s insistence for procurement of NOC will encourage the state trade organization (AKCDA) to indulge in anti-competitive activities. He said AKCDA had filed an undertaking with the CCI earlier that it would not indulge in anti-competitive activities. So, APT expects that AKCDA will not issue NOC to the dealer as wanted by the manufacturer.
However, he said the CCI will be intimated about the infringement of its order by a manufacturing company, forcing a trader to indulge in unfair trade practices. He also wanted the enforcement agency to restrain such manufacturers from doing business in Kerala.
“Previously, the CCI orders were breached by the state trade body on the advice of AIOCD. But now, the manufacturers have also started to violate the trade regulator’s orders. This will encourage unethical trade practices and has to be stopped,” Kunhimoidu said.
Responding to a query, AKCDA president AN Mohanakurup said his organization does not insist any dealer to take NOC from AKCDA, but they are not bothered about the demands of the manufacturers. AKCDA is working on democratic principles. But, he said AKCDA will collect the price list from manufacturing companies which have business in Kerala.
On December 9, 2013, CCI issued an order stating that any kind of interference by AKCDA with regard to appointment of stockists or introduction of new products or boycotting of pharmaceutical companies/products would be taken as illegal and anti-competitive.