law: Trade Monopolies and Restrictive Trade Practices Act, 1969 
  40. Prohibition of Other Measures for Maintaining Resale Prices.
  (1) Without prejudice to the
  
  provisions of this Act with respect to registration and to any of the powers of
  
  the Commission or of the Central Government under this Act, no supplier shall
  
  withhold supplies of any goods from any wholesaler or retailer seeking to obtain
  
  them for resale in India on the ground that the wholesaler or retailer –
  (a) has sold in India
  
  at a price below resale price, goods obtained either directly or indirectly,
  
  from that supplier, or has supplied such goods, either directly or indirectly,
  
  to a third party who had done so; or
  (b) is likely if the
  
  goods are supplied to him to sell them in India at a price below that price or
  
  supply them, either directly or indirectly, to a third party who would be
  
  likely to do so.
  (2) Nothing contained in sub-section
  
  (1) shall render it unlawful for a supplier to withhold supplies of goods from
  
  any wholesaler or retailer or to cause or procure another supplier to do so if
  
  he has reasonable cause to believe that the wholesaler or the retailer, as the
  
  case may be, has been using as loss leaders any goods of the same or a similar
  
  description whether obtained from that supplier or not.
  
  
  (3) A supplier of goods shall be deemed to be withholding supplies of goods
  
  from a dealer if he –
  (a) refuses or fails to
  
  suply those goods to the order of the dealer;
  
  
  (b) refuses of supply those goods to the dealer except at prices, or on terms
  
  or conditions as to credit, discount or other matters which are less favourable
  
  than those at or on which he normally supplies those goods to other dealers
  
  carrying on business in similar circumstances; or
  (c) treats a dealer, in
  
  spite of a contract with such dealer for the supply of goods, in a manner less
  
  favourable than that in which he normally treats other dealers in respect of
  
  time or methods of delivery or other matters arising in the performance of the
  
  contract.
  (4) A supplier shall not be deemed
  
  to be withholding supplies of goods on any of the ground mentioned in
  
  sub-section (1), if, in addition to that ground, he has any
  
  other ground which alone would entitle him to withhold such supplies.
  
  Explanation I : "Resale price", in relation to sale of goods
  
  of any description, means any price notified to the dealer or otherwise
  
  published by or on behalf of the
  
  supplier of the goods in question (whether lawfully or not) as the price or
  
  minimum price which is to be charged on, or is recommended as appropriate for,
  
  a sale of that description or any price prescribed or purporting to be
  
  prescribed for that purpose by any contract or agreement between the wholesaler
  
  or retailer and such supplier.
  
  Explanation II : A wholesaler or retailer is said to use goods as loss
  
  leaders when he re-sells them otherwise than in a genuine seasonal or clearance
  
  sale not for the purpose of making a profit on the resale but for the purpose
  
  of attracting to the establishment at which the goods are sold, customers
  
  likely to purchase other goods or otherwise for the purpose of advertising his
  
  business.