On 27th April 2000, the Ministry of Law, Justice, and Company Affairs issued a notification regarding the appointment of sole selling agents in India. Under section 294 AA of the Companies Act, 1956, the Central Government determined that the demand for specific goods, particularly bulk drugs and formulations, significantly exceeds supply. Therefore, companies are prohibited from appointing sole selling agents for these goods for a period of three years from the notification’s publication. This ban excludes bona fide preparations from Ayurvedic, Unani, and Homeopathic systems of medicine, reflecting a regulatory response to market conditions.
Ministry of Law, Justice & Company Affairs
Department of Company affairs
NOTIFICATION
New Delhi, the 27th April, 2000
G. S. R. 364(E).—In exercise of the powers conferred by sub-section (1) of section 294 AA of the Companies Act, 1956 (1 of 1956), the Central Government being of the opinion that the demand for the category of goods specified in the Table below is substantially in excess of the production or supply of such goods and that the services of the sole selling agents will not be necessary to create a market for such goods, hereby declares that sole selling agents shall not be appointed by any company for the sale of such goods in India for a period of three years from the date of publication of this notification in the Official Gazaette.
Every category of “Bulk drugs”, “drugs” and “formulations” as defined in the Drugs (Prices Control) Order, 1987 not being (i) Any bonafide preparation included in the Ayurvedic (including Siddha) or Unani (Tibb) systems of medicine; or
(ii) Any preparation included in the Homoeopathic system of medicine.
[F. No. 5/10/2000-CL.V]
A. RAMASWAMY, Jt. Secy.
