In a drug cartel case, Competition Commission of India (CCI) on Tuesday granted an

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interim relief drug stockiest of Orissa to Santuka Agencies till June 30.

Santuka Agencies which stocks in Orissa the drugs manufactured by USV group petitioned the commission for interim relief after the manufacturer issued a termination notice to it on May 4..

Santuka Agencies has alleged that the action by USV group followed a dispute with All India Organisation of Chemists and Druggists (AIOCD) over elections of Cuttack District Chemist & Druggist Association.

AIOCD had allegedly pressurized the USV group to terminate its supply contract as otherwise it would use its influence to prevent sale of the company's drug in other states, the petition said.

AIOCD in its reply to the commission on Monday said it was not involved in the dispute between USV and Santuka Agencies. AIOCD alleged that the association has been dragged into the matter because of "vested interest" of Santuka agencies..

AIOCD has a control over the appointment of drug stockiest in all the states. Without AIOCD nod, drug manufacturers cannot appoint drug stockists in states.

The agency claims to controls around 95 per cent of India’s pharma trade with over 5.5 lakh members.

Meanwhile, the commission has ordered an inquiry into the allegations of using market dominant position by AIOCD to influence the supply of drugs from drug manufacturers. It has directed the director general to investigate the matter and submit its report in 45 days.

USV is a leading healthcare company, which has a joint venture with a subsidiary of Revlon. Some of its product include Active Pharmaceutical Ingredients (APIs), Peptides, Biosimilars, Injectables and Ophthalmics and Solid Orals.

Company registered a sale of Rs 1,121.8 crore in 2010-11.