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TNPDA files contempt of court petition in MRTPC against 3 Mumbai based cos
Gireesh Babu, Mumbai | Saturday, January 5, 2008, 08:00 Hrs  [IST]

The Tamil Nadu Pharmaceuticals Distributors Association (TNPDA) has filed a petition with the Monopolies and Restrictive Trade Practices Commission (MRTPC), against three pharma companies alleging violation of the Commission's interim order restraining discriminatory trade practices on Friday.

The Association has sent a notice to the Mumbai based Franco Indian Pharmaceuticals Pvt Ltd, Aventis Pharma Ltd and Alkem Laboratories Ltd for denying pharmaceutical supply for TNPDA members, in the first week of December 2007. TNPDA sources points out that the stoppage of supply to its members is against the interim order of MRTPC, issued in 2005, in its case against All India Organisation for Chemists and Druggists (AIOCD), Tamil Nadu Chemists and Druggists Association (TNCDA) and various pharmaceutical manufacturers' associations and three other drug companies.

"The denial of supply to our distributors shows sheer disregard to the proceedings of the Commission, especially when we have an interim order against monopolising the drug trade under a particular traders' association from MRTPC. The three companies refused their supply to us for the last two months and in December, we have issued a notice stating that we will move a contempt of court petition with the Commission. Since there was no reply from the parties till date, we have filed a petition with the commission's Delhi office," said a TNPDA official.

The Commission is holding the final hearing of TNPDA's petition against TNCDA, AIOCD, Indian Drug Manufacturers Association (IDMA), the Pharmaceuticals & Allied Manufacturers & Distributors Association Ltd. (PAMDAL), and three pharmaceutical companies - Merck (India) Ltd., Aventis Pharmaceuticals Ltd. and Tablets India Ltd - in the end of February 2008. The petition was filed in the middle of 2005, and the Commission pronounced the interim judgement in the open court on September 2, 2005.

In the interim order, the Commission directed IDMA and PAMDAL not to act on instructions of TNCDA and AIOCD to stop supply of pharmaceutical products to the members of TNPDA who do not obtain consent from the TNCDA and AIOCD and its affiliate members. As Pharmabiz reported earlier, the Commission also asked the respondents to file an affidavit of compliance within four weeks of the order.

The complainant said that a distributor from Gujarat has joined as a party in the case against the companies and AIOCD affiliate and any interested individual or group can join as a party in the case at any time.

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