CCI imposed Penalty of 18.38 Crore on Bengal Chemist and Druggist Association

Competition Commission of India (CCI) on 14 March 2014 imposed a penalty of 18.38 crore rupees on Bengal Chemist and Druggist Association (BCDA) and its office bearers. The penalty was imposed for anti-competitive practices in supply of the medicines, after a case was filed by Dr. Chintamoni Ghosh, Director, Directorate of Drugs, West Bengal in 2013.

Holding that BCDA and its District and Zonal Committees were engaged in anti-competitive practices directly or indirectly determining the sale prices of drugs and controlling or limiting the supply of drugs through concerted and restrictive practices. The CCI has also directed the BCDA and its office bearers and executive committee members to seize and desist from indulging in practices found to be anticompetitive in terms of the provisions of the Act.

Considering the issue, the CCI in its decision has imposed a penalty on BDCA and those office bearers who were directly responsible for running its affairs and play lead role in decision making at 10 percent and on the executive committee members at 7 percent, of their respective turnover/income/receipts.

The CCI after considering the entire material had directed the Director General (DG) to cause an investigation into the matter and to submit its report.