A writ petition has been filed against the Competition Commission of India (CCI) and Securities and Exchange Board of India (SEBI) by the South Chemists & Distributors Association (SCDA) in the Delhi High Court against the failure of CCI and SEBI to respond to SCDA’s concerns around PharmEasy’s parent company — API Holdings. The Delhi HC has now issued notices in the matter and directed CCI and SEBI to be present at the next hearing scheduled for January 13, 2022, according to a press release by SCDA. The Union government, API Holdings, and Docon Technologies have also been made respondents in the case, according to a copy of the petition reviewed by MediaNama. Why it matters: Litigation can throw a spanner in the works of PharmEasy’s IPO which awaits SEBI’s green light. The petition also highlights serious issues, which if true, can scuttle PharmEasy’s plans to go public altogether. Prayers of the petition The traders’ body is requesting Delhi HC to issue the following orders: Direct CCI to initiate an inquiry into API Holdings acquiring a controlling stake in Thyrocare Technologies Ltd. through Docon Technologies Pvt. Ltd. under the Competition Act, 2002. Call on SEBI to reject the Draft Red Herring Prospectus (DRHP) filed by API Holdings under Section 11A of the SEBI Act, 1992. What are the grounds on which SCDA is making its case? The traders’ body revealed that it is approaching Delhi HC to protect the wealth of investors. Here is a summary of reasons which compelled SCDA…
