Maharashtra Food and Drug Administration (FDA) recently initiated a probe over the complaints filed by the Maharashtra Chemist and Distributors Federation (MCDF) over the unethical practices indulged in by some pharma companies in association with the state based Pharmaceutical Wholesalers Association (PWA). In their complaint, MCDF alleged that to ensure their monopoly in the state, PWA has been trying to enter into understanding with certain pharma companies on terms which are against the Drugs and Cosmetics (D&C) Act.

On December 14, MCDF members in a meeting with the Maha FDA officials submitted the copy of the memorandum in question signed between PWA and Ranbaxy to the state regulatory body. Narendra Jain, general secretary, MCDF informed that para one of the said Memorandum of Understanding (MoU) enforces companies to appoint stockist at the instance of PWA, which is an offense since appointing stockiest at the instance of that or any body is punishable under Indian law and various other acts. Following the meeting held between them, Malani, assistant commissioner of Maha FDA, assured that requisite action will be taken against the wrongdoers if they are found to be guilty of the alleged crime.

The MoU in question is believed to be enforcing illegal labeling activities on the dealers. Interestingly, MCDF believes that some such illegal activity is being conducted with knowledge of 'some' FDA officials against whom complaint have already been registered, with investigation under progress. Based on the prima facie evidence, Mahesh Zagde, commissioner of Maha FDA has already expressed his displeasure over such illegal activities and have directed Malani and a team of officials to investigate this matter. Malani informed that since they are in the process of investigating the charges levied by MCDF, it would be too early to comment on the progress or current status of the same.

However, it is understood that as a part of the investigation, FDA has already summoned PWA and Ranbaxy officials to their office to get their statements on this issue. Also in pursuance to the representation, commissioner Maha FDA is said to have alerted in his communication dated December 19 to the intelligence wing to investigate and unearth the nexus between officials and trade associations.

Jain who also runs an NGO, called Pharma Gladiator said, “We are pleased with the response of the FDA to further the investigation in this matter as it needs urgent consideration. Under the constitution of the country, any licensee under drugs and cosmetic act is entitled to supply and receive the medicines throughout India. Thus putting restriction on the right of licensee to receive and supply goods throughout the country is an offense. How can an association dictate and arm twist others to be biased and force them to follow what is unconstitutional and wrong. Companies must be cautious before entering into such agreements  and steps should be taken to bring the wrongdoers to account for their misconduct.”

Further he appealed to the dealers and companies to come forward to end up the monopolistic and restrictive activities of PWA and MSCDA by joining their cause.