CCI imposes Rs 18-crore fine on BCDA, senior officials

The Competition Commission has slapped a penalty of over Rs 18 crore on Bengal Chemists and Druggist Association as well as on its senior officials for manipulating prices and restricting the supply of medicines into the market.
"The Commission decides to impose a penalty on the BCDA & its those office bearers who are directly responsible for running its affairs and play lead role in decision making at 10 per cent and on the executive committee members at 7 per cent, of their respective turnover/income/receipts," the fair trade watchdog said in a statement.
Also, the Competition Commission of India (CCI) directed BCDA and its office bearers and executive committee members to "seize and desist" from indulging in anti-competitive practices.

The CCI had referred the case for an investigation after it received complaints from some chemists.
"It has come clear during the investigation that BCDA and its district and zonal committees are engaged in anti- competitive practices of directly or indirectly determining the sale prices of drugs and controlling or limiting the supply of drugs through concerted and restricted practices," CCI said.
The penalty is based on 10 per cent and seven per cent of the average of the turnover/income/receipts of the association in last three financial years. The fine has been imposed on 79 entities including BCDA.

The CCI, which keeps tab on anti-competitive practices across sectors, has directed BCDA and its official to pay the penalty within 60 days from receiving the copy of the order dated March 11.

The BCDA, an association of wholesalers and retail sellers of drugs, has around 34,000 members in West Bengal.
It was alleged that BCDA restricted some of its members from selling essential medicines below maximum retail price.
The Commission observed that the "activities of trade association inter alia to direct its members to sell drugs only at their MRP is a palpable anti-competitive conduct which cannot be justified on the ground that most of the members of the BCDA, would be ruined if competitive forces are allowed to operate in the market."
Last month, the Commission had found the All India Organisation of Chemists & Druggists (AIOCD) - an all India grouping of chemists and druggists - guilty of indulging in unfair trade practices that influenced the prices of drugs and restricted supplies into the market.

The CCI slapped a penalty of Rs 47.41 lakh on AIOCD.