The DHC has directed the CCI and SEBI should be represented on the next date of hearing, i.e., on
13.01.2022 to respond to the averments made by SCDA regarding non-consideration of its
representations.
SCDA has approached the DHC against the failure of the CCI to respond to its representations
raising objections to combination of API Holdings Ltd. (API) with Thyrocare Technologies Ltd.
(Thyrocare).
It was only on 17.12.2021, that the SCDA came to know that API never sought approval of the CCI
for its combination with Thyrocare, even though SCDA had written to CCI regarding the
combination. In the petition it has been stated that the combined assets of API, after its acquisition
with Thyrocare, are above the threshold values prescribed and approval of CCI is mandatory for the
same. SCDA has also relied on the CCI Market Study on Pharmaceutical Sector in India dated
18.11.2021, where concerns regarding anti-competitive effects of e-pharmacies have been
considered by the CCI.
SCDA has also stated that SEBI has refused to consider and respond to its representations regarding
the Draft Red Herring Prospectus (DRHP) issued by API.
Reliance has been placed on General Order No. 1 of 2012 – SEBI (Framework for Rejection of Draft
Offer Documents) Order. 2012, which states that (a) for the protection of interest of investors, and
where investor may not be able to assess the risks associated with the issue and (b) Where there
exists litigation including regulatory action which is so major that the issuer’s survival is dependent
on the outcome of the litigation.
It has been stated last year, the Ministry of Health & Family Welfare had filed an affidavit before
DHC stating that there is no provision under the Drugs and Cosmetics Acts and Rules for online sale
of drugs. The issue of regulations regarding e-pharmacies is still under consideration. Further, the
DHC had injuncted online sale of medicines in order dated 12.12.2018 in W.P. (C) No. 11711 of
- Thus, to overcome API had created a maze of companies to confuse the public. While the
public is being given an impression that the IPO would be issued by Pharmeasy, in DRHP, API has
distanced itself from the business of Pharmeasy by stating that it is being run by another company.
However, SEBI has yet not responded to the representations of SCDA.
It has been submitted that to protect the wealth of the investors, SEBI ought to consider the issue
and not let general public misguided.
