{"id":180364,"date":"2018-01-08T17:30:24","date_gmt":"2018-01-08T12:00:24","guid":{"rendered":"http:\/\/www.scconline.com\/blog\/?p=180364"},"modified":"2018-01-08T14:13:35","modified_gmt":"2018-01-08T08:43:35","slug":"cci-imposes-penalty-chemists-druggists-association-baroda-federation-gujarat-chemists-druggists-association","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2018\/01\/08\/cci-imposes-penalty-chemists-druggists-association-baroda-federation-gujarat-chemists-druggists-association\/","title":{"rendered":"CCI imposes penalty on Chemists and Druggists Association of Baroda and Federation of Gujarat Chemists and Druggists Association"},"content":{"rendered":"<div class=\"MinistryNameSubhead text-center\" style=\"text-align: justify;\"><strong>Competition Commission of India:<\/strong> The Commission has found the Chemists and Druggists Association of Baroda (\u2018CDAB\u2019) and Federation of Gujarat State Chemists and Druggists Association (\u2018Gujarat Federation\u2019) to be in contravention of the provisions of the Competition Act, 2002 (\u2018Act\u2019).\u00a0One of the stockists based in Vadodara filed an information alleging that despite an earlier order of the Commission in the year 2012, CDAB, through its practices, has continued to limit and control the supply of drugs and medicines in the market by mandating \u2018No Objection Certificate\u2019 (\u2018NOC\u2019\/\u2018LOC\u2019) prior to appointment of stockists and payment of \u2018Product Information Service\u2019 (\u2018PIS\u2019) charges prior to introduction of new products in the market by pharmaceutical companies.<\/div>\n<p style=\"text-align: justify;\">Investigation carried-out by the\u00a0Director General (\u2018DG\u2019)\u00a0revealed involvement of the State Level Association,<em>i.e.<\/em>\u00a0the Gujarat Federation, besides CDAB, in the alleged conduct.\u00a0After detailed enquiry, the Commission has found that CDAB and the Gujarat Federation\u00a0were indulging in the anti-competitive practice of insisting NOC prior to the appointment of new stockists by pharmaceutical companies. Further, the Gujarat Federation was found to be carrying on the practice of making introduction of new products in the market subject to payment of PIS charge and its approval. 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. Further, the Commission has held\u00a0office bearers of CDAB and Gujarat Federation, namely\u00a0Shri V.T. Shah (President, CDAB), Shri Jashvant Patel (President, Gujarat Federation), to be\u00a0responsible under Section 48 of the Act, for their involvement in the anti-competitive practices.<\/p>\n<p style=\"text-align: justify;\">Accordingly, CDAB, Gujarat Federation\u00a0and their office bearers, have been directed to cease and desist from indulging in the aforesaid anti-competitive practice. 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 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 Shri V.T. Shah (President, CDAB) and Shri Jashvant Patel (President, Gujarat Federation).<\/p>\n<p style=\"text-align: justify;\">This case is yet another example of how competitive markets and fair-play in the distribution of drugs\/medicines are being compromised by the persisting anti-competitive behaviour of the chemist and druggist associations at the Regional as well as State level. It is indeed a serious matter that despite various orders by the Commission in similar cases and specific directions through a press notice, chemist and druggist associations have not mended their ways and have continued to indulge\u00a0in\u00a0such anti-competitive conduct. Considering the larger public interest involved in the distribution of drugs\/medicines, the Commission deprecates such a conduct and its perpetration in any form by those responsible, be it the Associations, Stockists\/Distributor\/Wholesaler\/Retailer and the Pharmaceutical Companies. Given the widespread and continuing indulgence in the Anti-competitive practices, the Competition Commission of India will be keeping a close watch on the conduct by all such entities in various parts of the country and would not hesitate to take action, wherever deemed necessary. [Reliance Agency v.\u00a0Chemists and Druggists Association of Baroda,\u00a0Case No. 97 of 2013, decided on 4.1.2018]<\/p>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>Competition Commission of India: The Commission has found the Chemists and Druggists Association of Baroda (\u2018CDAB\u2019) and Federation of Gujarat State Chemists <\/p>\n","protected":false},"author":91,"featured_media":76441,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[],"class_list":["post-180364","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>CCI imposes 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of Rs 10.62 lakhs imposed upon Chemist and Druggists Association of Goa for adopting anti-competitive practices","author":"Sucheta","date":"November 5, 2014","format":false,"excerpt":"Competition Commission of India (CCI): A penalty of Rs 10.62 lakhs has been imposed upon Chemist and Druggists Association of Goa for adopting anti-competitive practices of directly or indirectly controlling the supply of drugs in a concerted manner in violation of Section 3(3)(a) and 3(3)(b) of the Competition Act, 2002.\u2026","rel":"","context":"In &quot;Tribunals\/Commissions\/Regulatory Bodies&quot;","block_context":{"text":"Tribunals\/Commissions\/Regulatory 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3x"},"classes":[]},{"id":166954,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/11\/02\/cci-finds-kerala-chemist-druggist-association-guilty-anti-competitive-conduct\/","url_meta":{"origin":180364,"position":1},"title":"CCI finds All Kerala Chemist and Druggist Association guilty of anti-competitive conduct","author":"Saba","date":"November 2, 2017","format":false,"excerpt":"Competition Commission of India (CCI): The Competition Commission of India has found the All Kerala Chemist and Druggist Association and its District Units at Thrissur and Kasargod to be in contravention of the provisions of the Competition Act, 2002. Four stockists (wholesalers) in the State of Kerala had alleged that\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":48501,"url":"https:\/\/www.scconline.com\/blog\/post\/2016\/05\/21\/order-of-cci-imposing-penalty-upon-alkem-laboratories-set-aside\/","url_meta":{"origin":180364,"position":2},"title":"Order of CCI imposing penalty upon Alkem Laboratories, set aside","author":"Sucheta","date":"May 21, 2016","format":false,"excerpt":"Competition Appellate Tribunal (COMPAT):\u00a0While rendering relief to Alkem Laboratories, its two officials, All Kerala Chemists and Druggists Association (AKCDA) and one of its officials, who were fined by CCI in a case alleging anti-competitive practices, COMPAT set aside the said judgment of CCI. The impugned judgment of CCI was passed\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/05\/competition_appelate_tribunal.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/05\/competition_appelate_tribunal.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/05\/competition_appelate_tribunal.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/05\/competition_appelate_tribunal.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/05\/competition_appelate_tribunal.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":28881,"url":"https:\/\/www.scconline.com\/blog\/post\/2015\/12\/07\/penalty-of-rs-7463-10-lakh-imposed-on-alkem-laboratories-for-anti-competitive-practices\/","url_meta":{"origin":180364,"position":3},"title":"Penalty of Rs. 7463.10 Lakh Imposed on Alkem Laboratories for Anti-Competitive Practices","author":"Sucheta","date":"December 7, 2015","format":false,"excerpt":"Competition Commission of India (CCI): Pharma enterprise Alkem Laboratories Ltd is found guilty for causing potential consumer harm due to its anti-competitive conducts and for lessening of competition in healthcare sector in Kerala. The competition regulator in its detailed order found that Alkem was following anti-competitive dektats of All Kerala\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":249885,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/17\/goa-excise-duty-amendment-rules-2021-passed\/","url_meta":{"origin":180364,"position":4},"title":"Goa Excise Duty (Amendment) Rules, 2021, passed","author":"Prachi Bhardwaj","date":"June 17, 2021","format":false,"excerpt":"The Government of Goa has passed the Goa Excise Duty (Amendment) Rules, 2021. The Goa Excise Duty (Amendment) Rules, 2021 amends the Goa, Daman and Diu Excise Duty Rules, 1964 in the following manner: Amendment of Rule 92[1].\u2014 After Rule 92 of the following rule shall be inserted, \u201c92A. Seasonal\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/Government-of-Goa.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/Government-of-Goa.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/Government-of-Goa.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/Government-of-Goa.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/Government-of-Goa.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":215798,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/06\/15\/cci-companies-not-to-indulge-in-mandating-clearance-noc-loc-that-are-anti-competitive-as-per-s-3-of-competition-act\/","url_meta":{"origin":180364,"position":5},"title":"CCI | Companies not to indulge in mandating clearance\/NOC\/LOC that are anti-competitive as per S. 3 of Competition Act","author":"Bhumika Indulia","date":"June 15, 2019","format":false,"excerpt":"Competition Commission of India (CCI): Ashok Kumar Gupta (Chairperson) and U.C. Nahta and Sangeeta Verma (Members) heard the information filed by MPCDF under Section 19(1)(a) of the Competition Act, 2002 and disposed of the same. The Informant herein, was involved in pharmaceutical trade whereas, Opposite Party 1 (OP-1), was a\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/180364","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/91"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=180364"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/180364\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/76441"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=180364"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=180364"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=180364"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}