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Rs 47 Crore Penalty on Glenmark- Pharma Co to appeal before Company Law Tribunal


Rs 47 Crore Penalty on Glenmark- Pharma Co to appeal before Company Law Tribunal

As per the CCI order Glenmark, Divine, Hetero and B M Thakkar have to pay a total penalty of Rs 46.43 crore. Also, three officials of Glenmark and one of B M Thakkar have been slapped with a fine of Rs 88,386.

New Delhi: Drug firm Glenmark Pharmaceuticals said it will file an appeal against the order of the Competition Commission of India (CCI) before the National Company Law Appellate Tribunal.

On July 13, CCI had imposed penalties totalling nearly Rs 47 crore on Glenmark Pharmaceuticals, its three officials, two other pharma companies and four Gujarat-based chemists associations for indulging in unfair business practices.

Besides, a carry and forward (C&F) agent had also been penalized.

M/s Reliance Medical Agency had filed a complaint with the CCI against the Chemist and Druggist Association of Baroda including pharma companies and C&F agents alleging that prior to being appointed as stockist they were required to obtain NOC from the local Chemist and Druggist Associations in Gujarat, Glenmark said in a BSE filing.

“The Commission has relied on findings of the Director-General and held that Glenmark is mandating no-objection certificates (NOC) from the trade associations for stockist appointment,” it added.

Medical dialogues team had earlier reported that In an 86-page order, the Competition Commission of India (CCI) also directed the entities to “cease and desist” from indulging in “the practice of mandating NOC, which has been held to be anti-competitive”.

Glenmark, Divine, Hetero and B M Thakkar have to pay a total penalty of Rs 46.43 crore. Also, three officials of Glenmark and one of B M Thakkar have been slapped with a fine of Rs 88,386.

A total penalty of Rs 12.50 lakh has been imposed on Federation of Gujarat State Chemists & Druggists Association and the three constituent associations — Amdavad Chemist Association, Surat Chemists and Druggists Association, and Chemists and Druggists Association of Baroda. Their office bearers will have to dish out a total penalty of Rs 2.22 lakh.

Read ALso: Rs 47 crore Penalty on Glenmark Pharma, other entities for unfair business practices

Glenmark disagrees with the findings of the Commission. While there is no material impact of the order, the company will file an appeal before the National Company Law Appellate Tribunal (NCL AT), the drug maker said.



Source: PTI
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