Drug Quality Failures Linked to Political Bond Donations

Photo:Representative Image

Recent data released by the Indian Election Commission on March 14 reveals that around 35 pharmaceutical companies in India have contributed approximately Rs 1,000 crore to political parties through electoral bonds. Among these companies, at least seven are under investigation for substandard drug quality at the time of the bond purchase.

The Drugs and Cosmetics Act of 1940 regulates the manufacture of pharmaceuticals in India, and state-controlled Food and Drug Administrations are empowered to inspect manufacturing units and test the quality of medicines sold.

While any state Food and Drug Administration can send notices to a company in case of failed quality tests, any punitive action, such as suspension of manufacturing or cancellation of a manufacturing license, can only be taken by the state in which the company's factory is located or by the Centre.

Amar Jesani, editor of the Indian Journal of Medical Ethics, has stated that state and central-level drug regulators often display a lax approach. He added that pharmaceutical companies may be financing political parties to negotiate regulatory cases at the state level.

Experts have pointed out that the pharmaceutical industry seeks concessions from governments in drug regulation and other areas, including cheap land, tax exemptions, favorable policies, or removal of price caps.

The unique codes of the bonds that match the donors and recipients will be made public in due course, bringing more transparency to the motivations behind these firms' donations to political parties. Nonetheless, experts have stated that drug companies play a significant role in political finance, which is noteworthy.

According to S. Srinivasan, an All India Drug Action Network activist, these companies have invested hundreds of crores in political parties, and it is unlikely that they did so purely for the love of democracy, elections, or charity.