'Fake product's sales crosses Rs 15,000 cr'
Mumbai, June 06: The sale of counterfeit products across sectors such as automotive components, pharma, herbal medicine and cosmetics has captured a market size of Rs 15,000 crore through illegal channels by March this year, according to an estimate made by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).
Consequently, the revenue losses to the exchequer would have exceeded Rs 1,200 crore for fiscal year 2005-06, revealed ASSOCHAM estimates.
The other areas in which spurious products sales are going on unabated are vegetable oils, spices, ghee and watch components. In these areas, the fake product sales has been estimated within the range of Rs 4,000 crore by March this year.
The sale of contraband automotive components, pharma, herbal medicine and cosmetic products, based of ASSOCHAM estimates for fiscal year 2005-06 is Rs 11,000 crore.
By March, last year, through the sale of contraband products in these areas, the government incurred revenue losses, in terms of duties evasion, of upto Rs 1,000 crore.
In a white paper on fake products sale, prepared by ASSOCHAM, based on the feedback of its constituents, it has been stated that automotive component sector has witnessed the highest sale of fake products with an estimated amount of Rs 5,000 crore in the current fiscal year.
In pharma sector, fake medicines were sold off in rural and semi urban market, the cost of which works out to be Rs 2,000 crore.
Herbal medicine and cosmetics sector alone registered a sale of another Rs 4,000 crore in 2005-06, which did a great deal of damage to its consumers.
The chamber is of the view the laws at present hardly provide for effective deterrence for the offenders either by way of monetary penalties, damages or criminal prosecution.
The ASSOCHAM has therefore suggested that measures should be taken to establish separate economic offence courts in every district. The judges in such courts should be specially trained to handle cases.
Their trail should be quick and timely so that the right message goes across the society.