Solar Life Sciences Medicare Private Limited And Chemist Association, Raisingh Nagar & Others

Case No. 20 of 2020 1 COMPETITION COMMISSION OF INDIA Case No. 20 of 2020 In Re: Solar Life Sciences Medicare Private Limited Informant Chak No. 48 NGC, Krishna Market, Town Junction Road, Hanumangarh Town, Rajasthan And Chemist Association, Raisingh Nagar Opposite Party No. 1 Radheshyam Bhakhar Opposite Party No. 2 President, Chemist Association, Raisingh Nagar Kamal Medical Store Mahesh Garg Opposite Party No. 3 Secretary, Chemist Association, Raisingh Nagar Garg Medicos, Rai Singh Nagar - 335051, District Sri Ganganagar (Rajasthan) Rajendra Kumar Mangla Opposite Party No. 4 Treasurer, Chemist Association, Raisingh Nagar Paras Medical Agency Rai Singh Nagar - 335051, District Sri Ganganagar (Rajasthan) Paramjit Singh Opposite Party No. 5 Vice-President, Chemist Association, Raisingh Nagar Khalsa Medical Store Case No. 20 of 2020 2 Rai Singh Nagar - 335051, District Sri Ganganagar (Rajasthan) Kulbhushan Bansal Opposite Party No. 6 Vice-President, Chemist Association, Raisingh Nagar Ambika Medical Store Rai Singh Nagar - 335051, District Sri Ganganagar (Rajasthan) Kamal Chawla Opposite Party No. 7 Vice-President, Chemist Association, Raisingh Nagar District Sri Ganganagar (Rajasthan) Navjyot Singh Opposite Party No. 8 Vice-President, Chemist Association, Raisingh Nagar District Sri Ganganagar (Rajasthan) Vikas Jyandhi Opposite Party No. 9 Jyandhi Medical Store office bearer, chemist Association, Raisingh Nagar Deepak Singhal Opposite Party No. 10 Press spokesperson, Chemist Association, Raisingh Nagar Sohan Lal Opposite Party No. 11 Press spokesperson, Chemist Association, Raisingh Nagar Manas Medical Store Rai Singh Nagar - 335051, District Sri Ganganagar (Rajasthan) Case No. 20 of 2020 3 Kamal Medical store through its proprietor/ owner Opposite Party No. 12 Opposite Kalra Nursing Home, Near Bus Stand Kamal wholesale Agency through its proprietor/ owner Opposite Party No. 13 Opposite Kalra Nursing Home, Near Bus Stand Chawla Medicos through its proprietor/ owner Opposite Party No. 14 Opposite Indira Trust Rai Singh Nagar - 335051, District Sri Ganganagar (Rajasthan) Garg Medicos through its proprietor/ owner Opposite Party No. 15 Near Dhanmandi, near HDFC Bank Rai Singh Nagar - 335051, District Sri Ganganagar (Rajasthan) Pankaj Medical store through its proprietor/ owner Opposite Party No. 16 Near Indira Trust, Rai Singh Nagar - 335051, District Sri Ganganagar (Rajasthan) Khalsa Medical Store through its proprietor/owner Opposite Party No. 17 Near Indira Trust and near Dr. Naresh Gupta Nursing Home, Shri Balaji Medicos Opposite Party No. 18 Near Devgan Hospital, Rai Singh Nagar - 335051, District Sri Ganganagar (Rajasthan) Shri Bikaner Medicos, through its proprietor/owner Opposite Party No. 19 Agarwal Hospital Rai Singh Nagar - 335051, District Sri Ganganagar (Rajasthan) Manas Medical store, through its proprietor/owner Opposite Party No. 20 Near Dr. Tej Sharma Clinic., Rai Singh Nagar - 335051, District Sri Ganganagar (Rajasthan) Ambika Medical, through its proprietor/owner Opposite Party No. 21 Kalra Nursing Home Road Rai Singh Nagar - 335051, District Sri Ganganagar (Rajasthan) Paras Medical Agency through its proprietor/ owner Opposite Party No. 22 Kalra Nursing Home Road Case No. 20 of 2020 4 Rai Singh Nagar - 335051, District Sri Ganganagar (Rajasthan) Dashmesh Medicos through its proprietor/ owner Opposite Party No. 23 Near Mundra Hospital Rai Singh Nagar - 335051, District Sri Ganganagar (Rajasthan) Jyandhi Medical store through its proprietor/ owner Opposite Party No. 24 Near Underpass, Rai Singh Nagar - 335051, District Sri Ganganagar (Rajasthan) Kumal Medicos through its proprietor/owner Opposite Party No. 25 Kalra Nursing Home, Rai Singh Nagar- 335051, District Sri Ganganagar (Rajasthan) Rai Singh Pharma Ltd. through its proprietor/owner Opposite Party No. 26 Near Government Hospital Rai Singh Nagar - 335051, District Sri Ganganagar (Rajasthan) Sri Ganganagar Chemists Association (City) Opposite Party No. 27 Sri Ganganagar - 335001 (Rajasthan) Omprakash Mittal Opposite Party No. 28 President, Sri Ganganagar Chemists Association (City) Mittal Medical Agency CORAM Ms. Ravneet Kaur Chairperson Ms. Sangeeta Verma Member Mr. Bhagwant Singh Bishnoi Member Case No. 20 of 2020 5 Present on 05.07.2023: For Informant Mr. Aditya Gupta, Advocate Mr. Gourav Kumar Nagpal, Director, Solar Life Sciences Medicare Pvt. Ltd. For OP-1 and OP-2 Mr. Radheshyam Bhakhar, President, Chemist Association, Raisingh Nagar For OP-27 and OP-28 Mr. Omprakash Mittal, President, Sriganganagar Chemists Association accompanied by Mr. Deepak Jain, Advocate Order under Section 27 of the Competition Act, 2002 1. The instant information was filed by Solar Life Sciences Medicare Private Limited (hereinafter, ‘Informant’), under Section 19(1)(a) of the Competition Act, 2002 (hereinafter, the ‘Act’) alleging contravention of provisions of Section 3(3) read with Section 3(1) of the Act. Facts and allegations, as stated in the Information 2. It was stated that the Informant is a supplier of pharmaceutical products under the brand name ‘SOLAR’ and has contract manufacturing tie-ups with accredited pharma units. It claims to be one of the leading suppliers of generic medicines for human consumption particularly in the State of Rajasthan and is stated to be growing its business in different parts of the country. 3. It was stated that OP-1, Chemist Association, Raisingh Nagar is an association of at least 60 chemists and druggists as members in Raisingh Nagar, a Tehsil, in the district of Sri Ganganagar in the State of Rajasthan. OP-2 to OP-11 are stated to be the key office bearers of OP-1, also engaged in the trade of pharmaceutical products whereas OP-12 to OP-26 are some of the chemists who are the members of OP-1 and are enterprises engaged in the trade of pharmaceutical products. OP-27 is stated to be the association of chemists in the city of Sri Ganganagar, State of Rajasthan. OP-28 is stated to be the President of OP-27. OP-1 to OP-28 are collectively referred to as ‘OPs/Opposite Parties’. 4. It had been averred in the information that the OPs had engaged in and continued to engage in anti-competitive practices of collectively boycotting the pharmaceutical products of certain manufacturers/suppliers such as the Informant. As stated, the modus Case No. 20 of 2020 6 operandi of the OPs, inter alia, was to collectively decide and impose margins and incentive schemes on the manufacturers/suppliers of pharmaceutical products. In the event of failure to offer such margins and incentive schemes to the OPs, the pharmaceutical products of such manufacturers/suppliers were boycotted i.e. the purchase and supply of such manufacturers/ suppliers of pharmaceutical products was limited by the OPs. As a result, the manufacturers/ suppliers of pharmaceutical products, under the threat of boycott were compelled to offer high margins and incentive schemes to the OPs. 5. The Informant had alleged that such decisions pertaining to boycotts, margins and incentive schemes were taken by the OPs under the aegis of the trade association i.e. OP-1. The Informant had relied upon two resolutions passed by OP-1, both dated 07.06.2020, wherein the Informant demonstrated that the OPs had indulged in the following anticompetitive practices: a. Agreeing upon margins to be sought from manufacturers/suppliers of pharmaceutical companies. b. Agreeing upon the incentive schemes to be sought from manufacturers/ suppliers of pharmaceutical companies. c. Agreeing upon imposing these margins and incentive schemes. d. Agreeing to take punitive measures such as not selling and purchasing products of manufacturers/ suppliers who refuse to offer the agreed upon margins and incentive schemes. e. Implementing punitive measures against non-compliant manufacturers/ suppliers such as the Informant. 6. As stated, pursuant to the passing of the aforesaid notices/resolutions by OP-1, other chemist associations in the State of Rajasthan which were Gharsana Chemist Association (Distt. Sri Ganganagar), the Gajsinghpur Chemist Association (Distt. Sri Ganganagar), Kesrisinghpur Chemist Association (Distt. Sri Ganganagar), Rawla Chemist Association (Distt. Sri Ganganagar), Anupgarh Chemist Association (Distt. Sri Ganganagar) and Padampur Chemists Association (Distt. Sri Ganganagar) also issued verbatim resolutions. The Informant had alleged that these associations issued their resolutions under the influence of OP-1 and its office bearers and had thus, indulged in anti-competitive practices.