The Department of Pharmaceuticals (DoP) will step in to issue a directive to the companies and chemists to clarify the situation arising out of the recent order of the Competition Commission of India (CCI) to the All India Organisation of Chemists & Druggists (AIOCD) on the restrictive practices in the industry.

The DoP, however, made it clear that it had not issued any direction in this regard yet to the druggists or the companies. The Department also ruled out meeting the stakeholders at the national level to discuss the issue.

“We have not issued any directive. We are seized with the situation and working out a clarification which will be issued early next week,” DoP joint secretary Shambhu Kallolikar told Pharmabiz.

There has been a directive in circulation, purportedly issued by the Department, in the industry for sometime now, quoting main contents of the order issued by CCI and also taking the names of some office-bearers of the AIOCD. Addressed to all manufacturing companies, C&F agents, distributors, stockists, wholesalers and chemists, the 'fake' directive had claimed that AIOCD demanded and received money from C&F agents.

However, the Joint Secretary categorically denied having issued such a letter by the Department at any point of time and took strong exception to the misinformation campaign. He also said the department will look into the source of such a letter in circulation.

On the Department holding the meeting of stakeholders as done by some Food and Drug Administration (FDA) commissioners, he said there was no need for the same as the CCI order had clarified the issues and it would be binding on the parties concerned.

Though there was no need for a special directive, the department is reportedly thinking of issuing clarification in the wake of the recent developments.

The CCI, in its order on February 19, 2013, had directed the AIOCD to cease and desist from indulging in and following practices which were found anti-competitive in violation of Section 3 of the Competition Act. It also imposed a penalty on the trade body, based on the complaint by Santuka Associates, a C&F agent based at Cuttack.

On its part, the AIOCD has also issued a circular to its members and state bodies to comply with the order of the CCI. In the circular, the president of the organisation said that it would not be required to obtain NOC for appointment of stockists, and pharmaceutical companies, stockists and wholesalers were at liberty to give discounts to their customers. It would not be mandatory to give product information services (PIS) charge. The PIS services could be availed by manufacturers/pharmaceutical firms on a voluntary basis. Shinde also assures that there will be no boycott of pharmaceutical companies, the organisation clarified.