Inspired by the recent penalty imposition of Rs. 47.41 lakh by the Competition Commission of India (CCI) on the all India pharmaceutical trade body, All India Organisation of Chemists and Druggists (AIOCD), the Pharmaceutical Traders’ Welfare Association of Bengal (PTAB), an affiliate of the All India Chemists & Distributors Federation (AICDF), has decided to file a suit against Kolkata based manufacturing company, Beacon Pharmaceuticals Limited for non-supply of essential medicines.

The office-bearers of PTAB allege that violating all legal norms the manufacturing company has stopped supply of essential medicines to a trader, Sarama Enterprises located in Burdwan district, way back in 2011. Their charge is that the company had stopped supply on the direction of the opposite trade body, AIOCD which has control over all the major companies and stockists in the country. In West Bengal, according to AICDF there is an unholy nexus between the members of Bengal Chemists & Druggists Association (BCDA), affiliate of AIOCD, and Beacon Pharma.

In an interview with Pharmabiz, the Kolkata based trader and AICDF national secretary, Joydeep Sarkar said, evidences transferred from the desk of National Pharmaceutical Pricing Authority (NPPA) to PTAB confirm that there is a secret and unethical understanding between BCDA and the local manufacturer, Beacon Pharmaceuticals who deliberately and purposefully skipped the supply of life saving drugs initially. According to him, Sarama Enterprise of Burdwan was appointed by Beacon to work independently at his town, but at a later stage, a sales manager of the company, who is very close to BCDA, intervened in the business dealings and asked the stockist to get approval from BCDA.

Joydeep said since there was no proper action from the state drug control authorities against this violation of D&C Act by the company, his association had lodged complaint with the NPPA which was also lagging in acting. So, AICDF decided to file a suit with CCI for a legal solution.

He further alleged that if a negligible mistake happened from the side of a trader, it would invite departmental punishments including huge taxing by the officials under various provisions of the law. This is a biased activity of the administrators towards the industry. Whereas, they act in a lackluster way against the violations made by manufacturing companies.

Recently the CCI, following a complaint filed by Cuttack based Santuka Associates, found AIOCD guilty of indulging in unfair trade practices that influenced the prices of medicines and control of supplies. The Commission slapped a penalty of Rs. 47.41 lakh on the trade body and ordered it to desist from these unfair practices. It has also asked the trade body to stop issuing no objection certificates for appointment of stockists, fixation of trade margins and unlawful trade activities.