Seeking stringent action from the state government, the Alliance of Pharmaceutical Traders, Kerala (APT), a Thrissur based association of major pharma stockists, has apprised the state drugs control department of the alleged indulgence of anti-competitive activities of the all Kerala Chemists & Druggists Association (AKCDA) and of the infringement of their commitments in the undertaking it had filed with the Competition Commission of India (CCI).

APT alleges that the office-bearers of AKCDA now demand huge money from new stockists towards fee for No-objection Certificates and for introduction of new products. These illegal activities are going on for some time, C P Kunhimoidu, president of APT said.

While sharing information with Pharmabiz, the president of the stockists association, said recently two pharma companies, Sunantha Associates and Sunatha Enterprises from Kozhikodu, obtained stockistship from four manufacturing companies, but the AKCDA office-bearers have orally threatened the C&F agents and other stockists of the companies, and asked them to stop supply of medicines to the new entrepreneur. He said the leaders of AKCDA have also instructed the retail traders in the state to boycott the four manufacturing companies and their products till AKCDA releases the NOC and other approvals.

Kunhimoidu further said his association is getting ready to file a case with the Competition Commission against the office-bearers of AKCDA for violating Section 3 of the Competition Act and the breach of assurances it submitted before the Commission. AKCDA had filed an undertaking before the CCI in February this year saying that it would not indulge in any kind of anti-competitive activities and comply with the orders of the Commission, dated 9.12.2013.

When contacted for response, P Hariprasad, the state drugs controller, said strict action will be taken against those trade bodies which are indulging in anti-competitive activities provided written complaints are filed with the department. He said, the department had initiated legal action against AKCDA previously for the same reason.

On July 28th, APT circulated a letter to all the C&F agents and the super stockists of the major manufacturing companies that certain persons under the banner of AKCDA were trying to defame the pharma trade in the state by demanding money for appointment of stockists and for introduction of new products. They are also insisting for no objection certificates (NOC) from AKCDA for appointment of stockists. Besides, the letter says that because of pressure from AKCDA office-bearers, some of the manufacturers are also reported to be violating the order of the commission. The associations of pharma manufacturers had earlier assured the CCI in writing that they would not be part of such illegal activities.

In the letter to the manufacturers, APT says that the present president of AKCDA had earlier appeared before the CCI as witness and submitted proof regarding existence of anti-competitive practices of the trade at state and national levels which had resulted in the order of the Commission. The same president and the secretary of AKCDA filed an undertaking on 21.2.2014 before the Commission that they would follow the order of CCI and also assured that all the 14 district office-bearers would comply with the same.

On December 9, 2013, the competition commission of India issued an order that any kind of interference by AKCDA with regard to appointment of stockists or introduction of new products or boycotting of pharmaceutical companies/products was illegal and anti-competitive.