Must read: The medicine cartel

[Guest guest]

In continuation with post no 4071 from Rajendra Diwe, here is the full story contributed by him. Compliments to Rajendra and appreciations for daring to expose the facts on NetRUM.Dr Vijay ThawaniGroup Owner NetRUM----------------------------------------------------------------------------------------------------------------------------------

The medicine cartel

By Rajendra Diwe

A shock wave has spread amongst the office bearers of All

India Organisation of Chemists and Druggists (AIOCD) in Maharashtra as well in India on the

issue of resignation of A.N.Mohan, National President of AIOCD.

"AIOCD President, Mohan was surrounded with controversies

since last six months. Mohan who was also a President of All-Kerala Chemists' and Druggists' Association (AKCDA), denied the

supplies of medicines to the co-operative medical store chain in Kerala. Through

these stores patients get the medicines at subsidized rates.

The AKCDA has not allowed the companies to sell the medicines to these stores.

Hence, companies approached the State Government. The State Government

through the officials of Kerala Drug Control Department took legal action

against A.N.Mohan", informed President G Madhu of Kerala Medical and Sales

Representatives Association. Madhu further stated that in a major raid on the office of AKCDA and the

institutions owned by A.N.Mohan, the Drug Control Department seized

unauthorized drugs worth Rs one crore, physician samples worth Rs 25 lakhs,

illegal accounts of Rs 2 crores and cash of Rs 75 lakh. A case has been

registered against it under the Drugs and Cosmetics Act and also the Drugs

Price Control Order under the Essential Commodities Act. The raid followed a

complaint by Consumerfed, Maveli and Neethi stores that the association was not

allowing their fair-price shops to sell some life-saving drugs, he added.

"No comment on this issue," said

Pradeep Mehadia, PRO of AIOCD from Nagpur.

When contacted Jagannath Shinde,

All India General Secretary of AIOCD said "Mohan, has resigned from the post

of President. The decision of resignation has no relation with what has

happened in Kerala. Mohan was also a President of AKCDA. As per the AIOCD

norms, if a person is not a member of state organization, how can he be a

President of national level organization. Hence, on these technical grounds he

resigned from the post. Also an ad hoc committee has been appointed in Kerala

to run the affiliate of the AIOCD. Pratapbhai Pandhi, from Rajkot has been appointed as President of

AIOCD".

Effort was made to contact

Anil Nawander, Joint Secretary of AIOCD on this issue but he did not attend the

phone call. Though the office bearers of AIOCD

are not coming out on the issue, it is clear from the news and the happenings

from Kerala state that a move to remove A N Mohan, president AIOCD from the

position was carried by local body, following the recent action by the Kerala

Drug Control Department canceling licenses of his distribution companies.

"The raid on the office of the

Kerala Chemists and Druggists Association here on Monday revealed that it had

been making an unauthorised collection of about Rs.30 lakh a month from drug

manufacturers," Madhu said. This

is the amount AKCDA is making each month by way of `PIC Fees' from

Pharmaceutical Companies. The Kerala government's action comes in the wake of

allegations that the AKCDA members are using the 'PIC fees' baton as an

effective tool to browbeat the pharma companies for favours both in cash and

kind, he added. Madhu

further stated that this is not the case in Kerala but it is happening all over

the country. How many Indians know that the price and availability of drugs,

including life saving ones, are controlled by a now-infamous drug stores cartel

called All India Organisation of Chemists and Druggists through its state

affiliates? Kerala government has intervened

in the matter but what about other states of India? In Maharashtra, it is learnt that the medicine manufacturers are refusing to sell medicines directly to

the chain stores of Subhiksha and Reliance who offer 10% discount on

MRP to the consumers, fearing a boycott by well-entrenched chemists and druggists who

dominate the market. #