THE income tax raids in India generally open a container of worms. The raids, conducted by the income tax department in July 2022 at the Bengaluru-based pharmaceutical organization Micro Labs Limited, the manufacturer of the Dolo-650 tablet, have done just that. The searches were related to financial records, balance sheets and business distributor networks of the firm. After the raids at 36 locations of the company throughout nine states, the Central Board of Direct Taxes found documents revealing that the company had indulged in "unethical practices".
And now, the Federation of Medical and Sales Representatives Association of India (FMRAI), a national trade union, has alleged in the Supreme Court that Micro Labs Limited offered doctors gifts worth Rs 1,000 crore to induce them to recommend Dolo-650 as the go-to medication. The union has pursued enforcement of the Right to Life under Article 21 of the Constitution. In its appeal, the FMRAI has blamed unethical marketing practices followed by pharma companies in their businesses with healthcare professionals, which in turn, has a harmful effect on the health of those who are already unwell. The petition mentioned that though branded as "sales promotion", direct or indirect benefits are offered to doctors like gifts and entertainment avenues, sponsored foreign trips, hospitality and other advantages in return for encouraging drug sales.
This story is from the September 19, 2022 edition of India Legal.
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This story is from the September 19, 2022 edition of India Legal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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