Donation for no action: 7 drug firms that failed quality test own bonds of parties

The Election Commission's revelation about the purchasers of electoral bonds brings to light an increasing number of companies entangled in illegal business activities but who had found themselves spared from punitive actions after their electoral bond purchasing spree.

In the latest report compiled by a joint effort of Newslaundry, Scroll, and The News Minute, it was revealed that pharmaceutical firms under investigation for producing poor-quality drugs were found to have purchased bonds worth crores, purportedly to evade further investigations.

The report indicates that thirty-five pharmaceutical firms collectively channelled nearly Rs 1,000 crore to various political parties through electoral bonds. Of particular concern is the revelation that at least seven of these companies were under investigation for producing substandard drugs at the time of their bond purchases.

Among the implicated firms, Hetero Labs and Hetero Healthcare stand out, having purchased electoral bonds amounting to Rs 39 crore in April 2022. During the preceding months, the Maharashtra Food and Drug Administration issued six notices to the Hyderabad-based company for substandard drugs, including Remdesivir, a crucial antiviral medication used extensively during the COVID-19 pandemic.

Similarly, Torrent Pharma, based in Gujarat, came under scrutiny for its contributions totalling Rs 77.5 crore between May 2019 and January 2024. Despite repeated quality-related failures, including its antiplatelet medicine Deplatt-150 and blood pressure-regulating drug Losar H, no punitive action was taken against the company by relevant authorities.

Zydus Healthcare, Glenmark, Cipla, IPCA Laboratories Limited, and Intas Pharmaceutical are among the other companies identified in the report for their questionable electoral bond purchases in light of their regulatory violations.

The lax regulatory response by both state and central authorities has drawn sharp criticism from experts. Amar Jesani, editor of the Indian Journal of Medical Ethics, highlighted the potential nexus between pharmaceutical financing and compromised regulatory oversight, suggesting that companies may seek to influence regulatory decisions through political contributions.

Furthermore, concerns have been raised regarding the broader implications of pharmaceutical companies' political financing. Malini Aisola from the All India Drug Action Network emphasized that such contributions could grant these firms privileged access and influence in government policymaking, potentially shaping legislation favourably for the industry.

Prashant Reddy, a researcher specializing in drug regulatory laws, pointed out the correlation between pharmaceutical political funding and recent legislative changes that reduce punitive measures against manufacturers of substandard drugs. This suggests a concerted effort by the industry to influence the legal framework in its favour, raising serious ethical and public health concerns.

The revelation comes at a time when India's pharmaceutical sector has faced international scrutiny due to incidents of deaths and infections linked to Indian-made medications in various countries. Despite warnings from international bodies such as the World Health Organization, Indian authorities' response to these issues has been criticized as inadequate.

The nexus between political financing and regulatory oversight in the pharmaceutical industry underscores the urgent need for transparent and accountable governance. Calls for stricter enforcement of drug quality standards and greater transparency in political funding have intensified in the wake of these revelations.