NEW
DELHI: A preliminary investigation by the Competition
Commission of India has found that three pharmaceutical companies and a few
regional chemist bodies used unfair trade practices to distribute drugs, a
senior government official said.
Torrent Pharmaceuticals, Intas Pharmaceuticals and Macleod Pharmaceuticals are accused of violating the Competition Act of 2002 by being part of a ploy by some regional trade bodies to appoint their favoured ones as stockists, he said.
The competition regulator has started hearing the matter and a verdict is likely to be out soon, the official said. After the hearing, the watchdog may also order further probe. If found guilty, the companies could face hefty penalties.
During the preliminary probe, the commission found that these trade associations issued noobjection certificates for the appointment of stockists in their regions to a few entities they favoured. “Pharma companies are also a part of this unfair practice as they appoint stockists," the official said. "This amounts to stifling the competition in the market by controlling supply of drugs,” he added.
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