The Competition Commission of India (CCI) has found the Chemists and Druggists Association of Baroda (CDAB) and the Federation of Gujarat State Chemists and Druggists Association (FGCDA) to be in contravention of the provisions of the Competition Act, 2002. These practices were held to be limiting and controlling supplies of drugs/medicines in the market, in contravention of Section 3 (3) (b) read with Section 3 (1) of the Act. The Commission has held office bearers of CDAB and FGDCA, namely V.T. Shah, President, CDAB and Jashvant Patel, President, FGCDA, to be responsible under Section 48 of the Act, for their involvement in the anti-competitive practices.
Further, the Commission imposed a monetary penalty of Rs. 1, 08,588/- and Rs. 11, 11,549/-, calculated at the rate of 10% of the average income of the CDAB and the Gujarat Federation, respectively, under the provisions of Section 27 of the Act. Penalties of Rs. 34,048/- and Rs. 62,144/-, calculated at the rate of 10% of their respective average incomes, are also imposed upon V.T. Shah and Jashvant.
One of the stockists based in Vadodara filed an information alleging that despite an earlier order of the Commission in the year 2012, the CDAB, through its practices, has continued to limit and control the supply of drugs and medicines in the market by mandating No Objection Certificate prior to appointment of stockists and payment of Product Information Service charges prior to introduction of new products in the market by pharmaceutical companies.