Thirty-five pharmaceutical companies in India have contributed nearly Rs 1,000 crore to political parties through electoral bonds, data released by the Election Commission on March 14 has revealed.
Of these, at least seven companies were being investigated for poor quality drugs when they purchased the bonds.
Pharmaceutical manufacturers are regulated by the Drugs and Cosmetics Act, 1940, which empowers state-controlled Food and Drug Administrations to inspect manufacturing units as well as test the quality of medicines being sold in the market.
Any state Food and Drug Administration can send notices to a company if its drugs fail the quality test. But punitive action – such as the suspension of manufacturing or cancellation of a manufacturing licence – can only be taken by the state where the company’s factory is located or by the Centre.
“We often see a lax approach by drug regulators, both at state and central level,” said Amar Jesani, editor of the Indian Journal of Medical Ethics. He said it would not be surprising “if pharma companies finance political parties to strike some compromise in regulatory cases at the state level”.
Other experts noted that drug regulation is just one area where the pharmaceutical industry seeks concessions from governments. Firms could also be looking for cheap land, tax exemptions,…
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