The Hindu Business Line : MRTPC's interim order against Pune pharma body

The Monopolies and Restrictive Trade Practices Commission (MRTPC) has passed an interim order against a Pune-based Chemist Association directing it to refrain from indulging in the restrictive trade practice of boycotting a pharma dealer.

A petition had been moved by SAK Consumer Retail Services Ltd seeking to restrain the Chemist Association of Pune District (CAPD) and the Maharashtra State Chemist & Druggist Association (MSCDA) for directing distributors to refuse to sell or supply the drugs, pharmaceuticals and medicines to SAK.

The Commission in its recent interim orders such as in the case regarding Tamil Nadu Chemists and Druggists Association and Karnataka Chemists and Druggists Association has held that any call of boycott of any dealer and/or association in any manner, written or oral shall be a restrictive trade practice and such practice "shall have to be stopped by the respondents whenever there is an evidence to this effect".

In this case, the MSCDA had issued a circular to the CAPD and its affiliates not to deal with Subhsiksha Supermarket and Pharmacy because of its plan to open a chain of pharmacy shops in the Mumbai region followed by other major districts of Maharashtra. The Districts Associations had been directed not to deal with Subhsiksha under the impression that the call given by the Association was "towards the betterment and survival of pharma trade of the members of the Association".

The petitioner, SAK Consumer Retail Services (which is the company selling medicines and drugs to the public through its outlets and obtained a drug license from the State of Maharashtra) used to buy specified drugs from the wholesale distributors of the manufacturers in Pune.

In view of the circular of the MSCDA, the distributors stopped sales and supplies of pharmaceuticals and medicines to the petitioner.

The Commission in its findings stated that it "is prima facie satisfied that the basic grievance of the petitioner is in nature and substance similar to the matter decided upon earlier by the Commission in its interim orders" such as in the case of Tamil Nadu Chemist and Druggist Association.

The Commission said: "In the facts and circumstances of this case the Commission issues an ad interim injunction against the respondents in prohibiting the action by these respondents and others."

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