The Competition Commission of India (CCI) has ruled that the Bengal Chemists and Druggists Association (BCDA), along with its Murshidabad and Burdwan district committees, engaged in anti-competitive practices. These included demanding 'No Objection Certificates' and payments from pharmaceutical companies and their stockists before supplying drugs. Two pharmaceutical companies, Alkem Laboratories and Macleods Pharmaceuticals, were also found to be complicit in these practices. While no monetary penalties were imposed, the CCI has ordered the BCDA to cease these activities and conduct advocacy to ensure future compliance with competition law.
Anti-competitive activities found amongst Bengal Chemists and Druggists Association and certain pharmaceutical companies
The Competition Commission of India (CCI) has passed an order findingBengal Chemists and Druggists Association (BCDA), its two District Committeesi.e.Murshidabad District Commi
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to
CCI PRO
for unlimited access
Why Upgrade to
CCI PRO?
-
No Ads
-
WhatsApp Community
-
Daily E-Newsletter
-
Unlimited News Access
-
Profile Visitors
-
Link Social Profiles
-
Featured Job Posts
-
Pro Badge
-
Expert GST Guidance
-
Unlimited Forum Replies
-
Download Content in PDF
BEST VALUE
2 YEAR PLAN
3,499
(Excl. of GST ₹629)
1 YEAR PLAN
1,999
(Excl. of GST ₹359)
3 MONTHS PLAN
999
(Excl of GST ₹179)
View all CCI PRO benfits
Already a PRO member?
Login here
for an ad-free experience.
FAQ :
The BCDA required pharmaceutical companies and prospective stockists to obtain a 'Stock Availability Information' or 'No Objection Certificate' from the BCDA, often involving monetary payments. Promotion cum Distributor agents also had to obtain 'Product Availability Information' after payment.
Alkem Laboratories Limited and Macleods Pharmaceuticals Limited were found to have anti-competitive agreements with the BCDA.
These companies demanded 'Stock Availability Information' or 'No Objection Certificates' from prospective stockists after issuing offer letters, before commencing drug supplies.
No monetary penalties were imposed by the CCI. However, the BCDA was directed to cease these practices and conduct advocacy events to ensure compliance with the Competition Act.
The CCI directed the BCDA, its district committees, office bearers, Alkem, Macleods, and their officials to stop engaging in the identified anti-competitive practices.
The CCI noted that the BCDA had taken steps to end the practice of requiring NOC/SAI, and Alkem and Macleods claimed they acted under duress from the BCDA.