COMPAT, vide its order dated December 07, 2015 set-aside the penalty of INR 47,63,579/- imposed by CCI on Shri Swapan Kumar Karak (Director, Karak Pharmaceuticals) holding him accountable, as a member of the Executive Committee of Bengal Chemist and Druggist Association (BCDA), for the decision by BCDA to restrict discounts on medicines by the pharmaceutical retailers.
The COMPAT considered that Mr. Karak had categorically stated in its reply before the Director General (DG) that he had resigned from his positions within the Executive Committee of BCDA and that he had no knowledge about the decision taken by the Executive Committee for restraining the sale of drugs and medicines below MRP.
However, post the assertion made by Mr. Karak, the DG did not even try to find out the truth behind the claim of Mr. Karak. The DG did not make any effort in that direction. Not only this, DG solely relied upon the minutes of various meetings of the Executive Committee, in which the Mr. Karak’s presence was shown without calling for the original record including the registers in which those participating in the meetings must have signed. CCI approved the DG’s findings.
The COMPAT was of the view that there is no escape from the conclusion that the DG and the CCI committed serious error by holding the appellant liable for anti-competitive conduct/activity committed by the BCDA.
(Source: Order dated December 07, 2015. For full text see CCI website-www.cci gov.in)
M M SHARMA
Comdt. (Retd.) M. M. Sharma heads the Competition Law & Policy team in VA since 2009 and has over 30 years’ experience as an Advocate of Delhi High Court and holds a Post Graduate Diploma in Economics of Competition Law from Kings College, London. He has worked in the Competition Commission of India (CCI) as Additional Registrar during 2006-2008 and was responsible for drafting the Implementing Regulations under the Competition Act, 2002. He has experience of working as Head-Legal /In-house Counsel for a large Corporate Group in the Steel and Power sector before joining VA in 2009. He has represented clients as an independent arguing Counsel in landmark cases decided by CCI, the Competition Appellate Tribunal (COMPAT) , High Courts and the Supreme Court. As a prolific writer, he contributes articles and is regularly quoted on competition issues in National Newspapers and interviewed by TV Channels. He also teaches as a visiting faculty in various Universities and Institutions and is widely regarded as a subject expert in various Committees of Apex Business Chambers, such as FICCI, CII, ASSOCHAM and PHD CCI.
Mr. Sharma has been mentioned as a “Notable Practitioner” in the “Competition/Antitrust” category of Chambers & Partners (Asia Pacific) Ranking of Leading Lawyers for Business in India for the year 2012 and 2013. VA’s competition law and policy team has also been awarded the Law Firm of the Year Award for “Competition/Antitrust Law” for 2013 by the Indian Business Law Journal. Included as a ‘Recognised Practitioner’ in Individual Lawyers’ranking by Chamber’s Asia Pacific Guide 2020 for Antitrust/Competition Law.
