Max Super Specialty, Patparganj has made “unfair” and “excessive” profits on the sale of disposable syringes to patients admitted in its hospital, an investigation by the Competition Commission of India has revealed. The commission is expected to hold a hearing on this issue on December 20.
CCI in 2015 ordered a probe into allegations that the hospital had colluded with multinational syringe maker Becton Dickinson’s Indian arm to sell a particular brand of disposable syringes for nearly twice its open market price.
Delhi-based lawyer Vijay Sharma, who filed the complaint, claimed he purchased Becton Dickinson India’s disposable syringe brand ‘Emerald’ from Max Patparganj’s in-house pharmacy for Rs 19.50 as per the Maximum Retail Price (MRP).
Yet, he claimed he was charged only Rs 10 for the same syringe at a medical store outside the hospital. The product’s MRP there was much lower at Rs 11.50 even though both the products were of the same name, quality, quantity, standard and manufactured by Becton Dickinson India, he alleged.
An investigation report submitted to CCI in May this year has found Max in violation of provisions in the Competition Act of 2002 that prevent enterprises or groups from abusing their “dominant” position in a given market. ET has viewed a copy of this report.
The investigation has found that the syringe purchased by Sharma from Max in Patparganj cannot be said to be identical to the one he purchased from the medical store outside the hospital.
According to the report, the products belong to two different categories of syringes manufactured by Becton Dickinson—’flow wrap’ syringes, priced at Rs 11.50 and ‘blister pack’ syringes, which carry a higher MRP of Rs19.50.
The investigation noted that Max shifted to higher MRP blister pack syringes from flow wrap syringes in 2015-16 from 2014-15 and this appears to be to earn higher profit margins. The margins noted in the investigation were not reasonable or for the benefit of the customers on sale of syringes, according to the report.
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