In yet another complaint to the National Pharmaceutical Pricing Authority (NPPA) citing instances of violation of Para 18 of the DPCO ’95 by certain drug companies and their C&F Agents, the Pharmaceutical Traders Association of Bengal (PTAB) has urged the NPPA to initiate stringent penal action against such offenders.

Coming down heavily on NPPA for its lackadaisical attitude in acting properly as per the law of the country, PTAB says that even after the manufacturing companies’ admission of offences in their replies to NPPA, the regulatory authority is reluctant to take action against them.

The traders’ body had earlier made complaints to the NPPA against the C & F Agent of Zydus Cadila Healthcare Ltd, Gujarat and Beacon Pharmaceuticals, Kolkata for violation of Para 18.

Following the complaint and the news reports appeared in Pharmabiz in February this year, NPPA sent show cause notices to the alleged offenders seeking explanations from them. In the reply, Beacon Pharmaceuticals of Kolkata said they stopped supply of essential drugs to a stockist in Burdwan district due to lack of fulfilment of terms and conditions including the approval of Bengal Chemists & Druggists Association (BCDA), an affiliate of AIOCD. The company gave assurance to NPPA that it would be ready to resume supply provided the stockist complied with the local formalities like BCDA permission.

Based on this statement of Beacon Pharma, Pranab Kumar Chakraborti, the general secretary of PTAB, argues that the company itself has admitted its offence, so the pricing regulatory authority is bound to take penal action against it. He said there is no need of permission from a trade organisation to supply medicines to authorized stockists. According to him, instead of initiating legal measures against the manufacturer, NPPA is favouring the company by being inactive which further encourages the violator to continue his unlawful activities. This is gross violation of acts and rules and against all sorts of business ethics which declines the confidence of the traders in the state, he said.

Drawing attention to the violation by Zydus Cadila, PTAB in its letter says that the company’s verbal assurance to the stockist in Kolkata that it would resume supply from April 2012 is a self explanatory affidavit to accept all allegations framed against it from time to time. Chakraborti says that this statement of Cadila is a confession which can be sufficient reason for NPPA  to initiate penal action against the company for stoppage of supply of essential drugs to Hindustan Medicals in Kolkata, an authorized dealer. The C&F Agent of the company, Shimana, had stopped supply of drugs to the dealer in 2010.

In the letters to NPPA against Zydus Cadila and Beacon, PTAB demands immediate penal action against the companies for their violations of DPCO as per the provisions of Essential Commodities Act, 1955.