Against the recent imposition of penalty on All Kerala Chemists and Druggists Association (AKCDA) by the Competition Commission of India (CCI) for unfair trade practices, the Alliance of Pharmaceutical Traders (APT), an association of pharmaceutical wholesalers in Kerala, has lodged complaints with the state enforcement officer against the C&F agents of Fourrts India and Intas Pharmaceuticals for violating trade practices and disobeying the directions of the Commission.

The association has also written to all the manufacturers and their marketing heads in Kerala urging them to strictly follow the directions of CCI and adhere to Para 28 and the relevant sub clauses of Drug Price Control Order (DPCO) 2013 promulgated under the Essential Commodities Act, 1955.

According to APT, the manufacturing companies, despite repeated orders from CCI, are insisting for ‘no-objection certificates’ (NOC) from the state trade body, AKCDA for supply of medicines to them. The association has complained of refusal of drug supply by the C&F agents of Fourrts India Lab, Chennai and Intas Pharmaceuticals, Mumbai.

Meanwhile, the chairman and managing director of Fourrts India, S.V. Veeramani told Pharmabiz that his company has not given any instruction to any of his agents to get NOC from AKCDA or from any other trade body. He said his company will follow the trade practices and comply with the directions of the CCI.

When contacted, Kerala drugs controller B. Hariprasad said that he has not gone through the complaint of APT. However, if any violation of trade practices is reported anywhere regarding refusal of drug supply by any firm, strict action will be initiated against it, he said. APT has sent the letter to the DC on December 1, this year.

In the letter to the manufacturing companies, the wholesalers’ body has reminded them that the wholesalers who are getting drug licences in Form 20 B and 21 B are supposed to buy drugs and sell them to persons and institutions as provided under Rule 2 (dd) ‘g’ of the Drugs and Cosmetics Act and Rules therein. So, refusal of supply is the violation of Para 28 of the DPCO which says, ‘no manufacturer or distributor shall withhold from sale or refuse to sell to a dealer any drug without good and sufficient reason'.

According to wholesalers, AKCDA is strictly giving instructions to manufacturing companies to supply drugs only to those who produce NOC from the organisation. AKCDA is also alleged to be collecting product information service (PIS) charge from manufacturers for new formulations.