Medical mafia controlling drug price, bribing doctors: High Court

While dealing with a tax case appeal filed by Fourrts (India) Labs Pvt Ltd, a division bench comprising Justice N Kirubakaran and Justice P Velmurugan said, “This constitutional court cannot restrict itself to the issue involved in the appeal and it is duty bound to issue remedial directions to address the larger issue of drugs being overpriced, and unnecessary drugs being prescribed by a section of medical practitioners at the instance of pharmaceutical companies.” The bench then suo motu impleaded the Centre represented by secretaries of Health and Chemicals and Fertilisers Ministries, along with National Pharmaceutical Pricing Authority (NPPA) and Medical Council of India (MCI) as respondents, seeking answers for a volley of questions.

These included the action taken by the MCI for violation of Regulation 6.8 of Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002, which prohibits doctors from accepting gifts, travel facilities, hospitality, cash or monetary grant from pharma firms and allied health sector Industries, and also for getting commission from diagnostic laboratories by prescribing unnecessary tests, scans etc., for the past five years.

Also, seeking details about doctors prosecuted from 2009, the bench wanted their names and action taken against them for accepting the hospitality from Fourrts (India) Labs Pvt Ltd, to the tune of Rs 42.81 lakh during the tax assessment year 2012-13. The bench also sought details on the steps taken by the MCI against the doctors who violated the conduct rules, the pharmaceutical companies that have been prosecuted for violating Regulation 3 of the Drug Price Control Order, 1995, for the past five years and the measures taken by the government to control the companies that overprice the drugs. In addition, it wanted to know whether the Income Tax department was regularly informing the Centre and NPPA about the companies that claim deduction for promotional expenses regarding payments and incentives to doctors, and for overpricing of drugs and the number of complaints received so far in this regard by the Authority and other official agencies. The bench also sought respondents to explain when a separate Ministry of Pharma and Medical Devices would be formed as stated by Chemicals and Fertilisers Minister had stated in February 2018, and when the Centre would make Uniform Code of Pharmaceutical Marketing Practices (UCPMP) statutory to control unethical marketing practices.

While issuing notice returnable by January 20, the bench also allowed private notice via e-mail, courier and WhatsApp.