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India – CCI Passes Order Against BCDA For Violation Of Section 3 Of The Act.

9 April, 2014

 

 

On March 11, 2014, CCI passed its order against the Bengal Chemists and Druggists Association (‘BCDA’), an association of wholesalers and retail sellers of drugs and pharmaceuticals holding them guilty of infringing of Section 3 (3)(a) and 3(3)(b) of the Act. Earlier CCI had initiated an inquiry on receipt of a complaint from an individual, Shri Arun Kumar Singh (‘Informant’).


In its decision, CCI held that, based on the review of the minutes of the meetings of BCDA and its affiliated District and Zonal Committees, BCDA had taken concerted action against those retailers which had sold their products below the maximum retail price by offering discounts. CCI took note of BCDA’s act of mobilising its organisational set up to enforce the diktat of sale of drugs by resellers at the pre-specified maximum retail price, including by issuing threats, picketing of shops, imposing fines and restricting supplies and held that the practice amounts to determination of prices within the meaning of Section 3(3) (a) of the Act. CCI also held that the practice of restricting supplies to resellers is inconsistent with Section 3(3) (b) of the Act.


Thereafter, CCI also examined the conduct of individual office bearers of BCDA and held them individually liable for the conduct of BCDA. CCI imposed a penalty at the rate of 10% of the average turnover of the BCDA members directly responsible for its operations and at the rate of 7% of the average turnover of the executive committee members of BCDA.

 

AZB

 

For further information, please contact:

 

Zia Mody, AZB & Partners
[email protected]

 

Abhijit Joshi, AZB & Partners 
[email protected]


Shuva Mandal, AZB & Partners 

[email protected]

 

Samir Gandhi, AZB & Partners
[email protected]

 

Percy Billimoria, AZB & Partners 
[email protected]

 

Aditya Bhat, AZB & Partners 
[email protected]

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