The Competition Commission of India (CCI) has imposed penalties of over Rs 74 crore on two pharmaceutical companies-- Himalaya Drug Company and Intas Pharmaceuticals -- as well as two Madhya Pradesh-based drug associations for indulging in anti-competitive trade practices, an official release said on Thursday.
The CCI found activities of Madhya Pradesh Chemists and Druggist Association (MPCDA) and Indore Chemists Association (ICA) to be in contravention of the provisions of the Competition Act, 2002.
As per the CCI order on June 3, a penalty of Rs 55.59 crore was levied on Intas Pharmaceuticals while Himalaya Drug was fined Rs 18.59 crore. Penalties were also imposed on certain officials of these firms.
Besides, MPCDA was fined Rs 4.18 lakh and ICA Rs 39,812.
In addition, the CCI gave 'cease and desist' directions issued under Section 27 of the Act.
According to a statement, the CCI directed MPCDA to organise at least five competition awareness and compliance programmes over a period of six months in Madhya Pradesh for its members. It also directed ICA to organise one competition awareness programme in Indore district.
The action was initiated after information was filed with the Commission by Madhya Pradesh Chemists and Distributors Federation alleging contravention of the provisions of Section 3 of the Act by MPCDA and others including certain pharmaceutical companies.
Disclaimer: No Business Standard Journalist was involved in creation of this content
