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iii. Audio recording between Shri Nayan Raval, Partner IP-3/IP-4 and Shri Avesh Makrani, Territory Manager, Mankind Pharma Ltd. ( , indicating that Mankind Pharma Ltd. was ready to supply goods but was afraid of the Association. The usage of words like 'Association problems', was relied upon by the DG to conclude contravention by OP-1 as well as Mankind Pharma Ltd.

31. The Investigation report has disregarded critical clarifications and submissions given by the Federation and the DG has drawn conclusion based on pre- conceived notions. The DG has failed to consider the contents and the directions given under the Mashelkar Committee Report wherein various actions have been recommended for the pharma trade associations to curb the problems of spurious/substandard drugs in the country.

37. Further, the Federation provided the following objections with regard to each of the evidence relied upon by the DG:

a. Audio recording between Shri Jashvant P. Patel and Ajay Solanki, Regional Manager of Astrum Healthcare Pvt. Ltd. has already been relied upon by the Commission in Case no. 97 of 2013. The said conversation was an attempt to resolve the pending issue of expiry claims arisen due to dumping of goods by the pharmaceutical companies. The fact that the Federation never refused the supply of products of Astrum Healthcare to M/s. Manish Medical Corporation is well reflected from the ledger showing regular supply being made to M/s. Manish Medical Corporation during the relevant period. b. In the audio recording of a purported conversation between Shri Yogesh Patel, Partner, IP-1 and Shri Bharat Pandya, Regional Manager of Hetero Healthcare Ltd., the latter categorically stated that the final approval for appointment of stockists is given by the head office and as such, in the entire process narrated by him, there is no role played by the Federation. Further, Shri Bharat Pandya has stated that "....I made it clear to him that his appointment cannot be regularized unless he provided us a clearance in the form of a letter/NOC from the local association". In this part of his statement, he did not make any mention of requirement of any NOC from the Federation. During the conversation, the company was only apprehending problems from the local associations if the NOC was not taken. The Amreli Chemist & Druggist Association vide letter dated 1.02.2015 had categorically written to Hetero Healthcare Ltd. that "....there is no system to get NOC from our Association". The company was providing an unnecessary reason to Shri Yogesh Patel for not appointing his firm as the stockists of the company and was trying to shift the burden upon the local association/ Federation by citing some problems faced in the past, way back in 2010. Shri Yogesh Patel is the executive member of the Amdavad Chemist Association (OP-2) and is well aware that no NOC is required for appointment of any stockist. Further, Shri Yogesh Patel acquired 28 new stockistships for IP-2 without any requirement of NOC; thus, negating the allegation regarding NOC. The DG, however, has drawn wrong conclusions from Shri Bharat Pandya's statement. c. Evidence with regard to Mankind Pharma Ltd.: The DG has ignored the response of Shri Anuj Sharma, Deputy Group Manager, Mankind Pharma Ltd. that the Federation has no role in the appointment of stockist and to the best of his knowledge, Mankind Pharma Ltd. has not come across any interference by the Federation in the appointment of new stockists in the State of Gujarat. The DG has ignored the statement of Shri Jashvant Patel wherein he has clarified that the said impugned letter was only sent to welcome the new division of Mankind Pharma Ltd. Further, the cross-examination of Shri Avesh Makrani establishes that all the statements made by him were based on market rumours and he has no first-hand information or evidence to allege the NOC practice.
Mr. N: On what subject E-Mail will come? So I can prepare accordingly. Mr. D: Nothing JUST YOU HAVE TO TAKE N.O.C. FROM ASSOCIATION [CHEMIST & DRUGGIST ASSOCIATION] [....] Mr. N: so, I has been written to Glanmark (sic) OR to your C&F. B.M. Thakkar & Co.
Mr. D: No...No... Glanmark will inform to me and I will Write to you [FOR N.O.C.] that your order and draft received and I am giving you the goods, code and all a/c are generate but you have to provide just N.O.C. OR I will write that after supply there will be no problem from association and if there will be any issue /problem arise by chemist and druggist association then responsibility is yours.