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Electoral Bonds Scam: The Pharma Files | Dhruv Rathee Electoral Bonds Scam: The Pharma Files | Dhruv Rathee

Electoral Bonds Scam: The Pharma Files | Dhruv Rathee



Electoral Bonds Scam: The Pharma Files | Dhruv Rathee

The Biggest Scam in the World

According to our Finance Minister Nirmala Sitharaman’s husband, who is an economist, the electoral bond issue is not only the biggest scam in India but the biggest scam in the world. This claim points to the magnitude and gravity of the situation.

A Collection of Scams

The electoral bond scam is not just a standalone incident but rather a collection of various scams. These include cases where public funds have been misappropriated, unworthy companies receiving government tenders, tax evaders being allowed to continue their activities, and companies being extorted.

Playing with Lives

Aside from the financial implications, there are also instances where the lives of citizens have been put at risk due to corrupt practices. Imagine a scenario where individuals lose their lives due to the consumption of poor quality medicines manufactured by unscrupulous companies. This is a grave injustice that cannot be attributed to mere chance or fate.

Take Action

It is crucial for authorities to address these issues promptly and hold those responsible accountable. The safety and well-being of citizens should be a top priority, and measures must be taken to prevent such scandals from recurring in the future.

Join the Fight

As concerned citizens, it is essential to stay informed about such scams and raise awareness among the general public. By coming together and demanding transparency and accountability from our leaders, we can strive towards a more just and equitable society for all.

The Shocking Revelation

It sounds like the plot of a dark political thriller. But unfortunately, this is the truth. Look at this report, written by health reporter Priyanka Pulla and published in Live Mint in December 2021. This report tells us a story from 9th May 2021. During the second wave of Covid in India, working at Uttar Pradesh’s Chiranjeev Hospital, an anesthesiologist Jitendra Pal got a call from the nursing staff. Over the call, he was told about stranger symptoms in 2 patients. They were shivering with high fever and suddenly their blood oxygen level plummeted. Both patients were given the first shot of antiviral medication Remdesivir. And only an hour later, this was the reaction. Shockingly, this was not the only incident. A few days ago, as Jitendra Pal had seen, the same thing happened to 4 patients of Lifeline Hospital.

The Investigation

After investigation, it was found that in both these hospitals, the same batch of shots was given to the patients. Batch V100167. It was manufactured by a company in Gujarat, Zydus Cadila. This medicine was procured from the company by the UP government. But as soon as doctors noticed the adverse reactions among patients, Doctors stopped using this batch of medicine. The doctors informed the families that they would use another medicine for Covid patients. Jitendra Pal told Livemint that once they stopped using this medicine, patients’ condition improved.

The Widespread Impact

Similar stories were playing out in many other hospitals in Uttar Pradesh. Jhansi, Maharani Lakshmi Bai Medical College, Meerut’s Lala Lajpat Rai Memorial Medical College, and Varanasi’s Ashirvad and Apex Hospital were also affected by the use of the same batch of medicine. The alarming rate at which patients were experiencing adverse reactions raised concerns about the quality and safety of the medication provided by the government’s procurement.

The Cover-Up

The entire incident sheds light on the corruption and negligence within the government’s healthcare system. The use of substandard medication, often bought through dubious channels, puts the lives of innocent patients at risk. The lack of accountability and transparency in the procurement process further exacerbates the problem, allowing such scams to go unnoticed until a tragedy strikes. It is imperative that strict measures are put in place to ensure the safety and well-being of the citizens, especially in times of crisis like the Covid-19 pandemic.

Issue of Contaminated Remdesivir Medicines

Between 7th and 9th May, reports emerged of patients experiencing adverse reactions after taking Remdesivir medicines from specific batches. Dr. Anuj Kumar reported cases where patients developed a fever and breathing difficulties, all of whom had purchased Remdesivir from the same company.

Widespread Impact Across States

Soon after, similar incidents were reported in different states such as Rajasthan, Maharashtra, Gujarat, Bihar where patients deteriorated after consuming Remdesivir from batches V100153, 156, 166, 167, 170 or L100148, all manufactured by Cadila. Despite concerns raised by multiple hospitals, state regulators in Uttar Pradesh, Rajasthan, Maharashtra, and Gujarat remained passive, with the exception of Bihar.

Bihar Regulatory Intervention

Authorities in Bihar took action by testing medicines from one of the suspect batches, V100167, and discovered the presence of bacterial endotoxins in the medication. These compounds were identified as the cause of the patients’ fevers and potential risk of septic shock if consumed in excess.

Legal Action and Accountability

A case was filed against the manufacturing company in Patna’s civil court following the revelation of contaminated medicines. The manufacturing unit was based in Gujarat, raising questions about the responsibility of the Gujarat FDCA in ensuring the quality and safety of the medicines produced by the company.

Bihar’s Regulator Raises Concerns

Then Bihar’s regulator informed the Gujarat FDCA too. And it was their responsibility to test these batches. But they did not conduct any testing. The Joint Commissioner of Gujarat’s Regulatory Lab told Mint that the batches of these medicines never reached their lab for testing.

No Answers from Gujarat FDCA

The Gujarat FDCA Commissioner was repeatedly asked about why didn’t their department test the medicines. But there were no answers. As per the Drugs and Cosmetics law, every remaining bottle of this medicine should have been recalled. But there is no proof that the Gujarat FDCA recalled those medicines.

Shocking Twist in the Story

When Cadila’s spokesperson was asked about these reports, they denied these allegations. But now there’s another shocking twist in this story. 6 months before this happened in November 2020, WHO, the World Health Organization, had said that we should not use Remdesivir. WHO conducted a study on more than 14,000 people across more than 450 hospitals in 35 countries. The study found that Remdesivir is not actually effective against Covid. Even so, not only did our government approve Remdesivir, but was also talking about increasing its production.

Connection to Electoral Bonds

Look at the government’s press release from April 2021. This medicine was originally developed by an American company. And 7 Indian companies in India got its manufacturing license. There is a connection and an irrefutable connection at that. But before telling you about that connection, you need to understand the chronology properly. First, the World Health Organization said that Remdesivir should not be used.

Zydus Cadila and the Electoral Bonds Scam

Second, Modi government ignored WHO’s advice and approved the increase of production of this medicine. Zydus Cadila company was given the approval to manufacture this medicine by the Gujarat FDCA. Hospitals from 5 states reported that, due to the defective batches of the medicine, the condition of Covid patients had declined. Bihar’s regulator found that these defective batches contained bacterial endotoxins. These medicines were of poor quality. Despite all this, Gujarat FDCA did not test these defective batches.

Political Donations and Influence

BJP formed the central government as well as the Gujarat government. The electoral bonds data revealed that Zydus Cadila company donated 180 million to BJP through the Electoral bonds. This company also donated 30 million to Congress, which was in power in Rajasthan at that time. Additionally, 80 million was donated to BJPs ally, SKM Sikkim Krantikari Morcha, which has been in power in Sikkim since 2019. This political party received donations from 5 companies, where 4 of them were pharma companies. It is believed that Sikkim’s status as a pharma hub influenced these donations.

Glenmark Pharmaceuticals’ Role

Another pharma company, Glenmark Pharmaceuticals, also came under scrutiny. Between 2022 and 2023, 5 notices were issued to the company due to substandard medicines. 4 of these notices were issued by Maharashtra Food and Drugs Administration. The blood pressure regulating medicine manufactured by Glenmark Pharmaceuticals was deemed to be substandard.

Corruption Unveiled

As we delve into the electoral bonds data, a shocking revelation comes to light – a company purchased electoral bonds worth a staggering 97.5 million in November 2022, with the ruling party, BJP, cashing in all these bonds. This raises serious concerns about the integrity of the electoral system in India.

Questioning Accountability

With the focus now shifting to a Gujarat based company, Torrent Pharma, and its antiplatelet medicine, Deplatt 150, which was deemed substandard by the Maharashtra Food and Drug Administration in 2018. Despite warnings from the US FDA about quality-related failures, the company continued its operations unabated. Between May 2019 and January 2024, Torrent Pharma purchased electoral bonds worth a whopping 775 million, with the lion’s share going to the BJP. The lack of action by Indian authorities in light of these warnings raises serious doubts about the government’s accountability.

Regulatory Negligence

Cipla, another major pharma company, found itself embroiled in controversy with four show cause notices served regarding its medicines in August 2018. Inspections revealed deficiencies in their RC cough syrup and Remdesivir medicines. Despite repeated warnings and notices, the company continued its operations without rectifying the issues. Shockingly, it has now come to light that Cipla purchased electoral bonds worth a hefty 392 million, with the majority of the funds channeled towards the BJP. This blatant disregard for quality standards and regulatory compliances is a cause for concern.

Electoral Bonds Scam Unveiled

These bonds will help you understand the chronology better. In July 2019 and October 2019, a certain company bought electoral bonds. However, in November 2019, the BJP was removed from power and Uddhav Thackeray became the new Chief Minister of Maharashtra. He remained the Chief Minister till June 2022. After that, the BJP coalition government was formed again. What do we see next? This company bought electoral bonds in November 2022 again, paying bribes for opportunities. This scheme is only a part of the electoral bond scam.

The Impact on General Public

You may think that this doesn’t affect us. A company paid some money to get business opportunities and even though other companies suffered, we were safe. Some people might even be okay with them, taking a share of public funds by paying some extra amount to political parties. But can you be so uninterested, even after listening to this case?

Tragic Consequences of Corruption

A cough syrup is not only given to adults, but also to children older than 6 years. Look at this news. From December 2022, 18 children lost their lives in Uzbekistan due to drinking substandard cough syrup. The next month in January 2023, WHO linked the deaths of these children to two contaminated cough syrups, Ambronol Syrup and Dok1 Max Syrup. Laboratory analysis revealed that both these products contained high Amounts of diethylene glycol and ethylene glycol. Both these cough syrups were manufactured by a company in Uttar Pradesh, Marion Biotech and was distributed by Quramax Medical in Uzbekistan. But Uzbekistan was not the only case.

Contaminated Cough Syrups

Even in Gambia and Cameroon, children died due to contaminated cough syrups. Apart from Marion Biotech, two other Indian companies were involved. Haryana based Maiden Pharmaceuticals and Madhya Pradesh based Riemann Labs. In total, 141 children lost their lives and Marion Biotech’s cough syrup was related to 68 of these deaths.

Uzbekistani Government’s Response

What was the Uzbekistani government’s response to this incident? Their Ministry of Health banned all the drugs that were being imported by Quramax in January 2023. Their court cancelled the license of Quramax Medical and decided that all remaining medicines imported by this company would be destroyed. The court sentenced 23 people to imprisonment for a term of 2 to 20 years, including Raghvendra Pratar Singh, the Indian Executive Director of Quramax, who was sentenced to 20 years in jail.

Investigation in India

In India, there was an investigation by the Central Drug Standard Control Organisation. 22 samples of the cough syrup manufactured by Quramax were tested and found to be adulterated. Reuters reported that Marion Biotech was buying the ingredient propylene from a company named Maya Chemtech India, which did not have a license to sell pharmaceutical-grade materials, only an industrial-grade license. Industrial grade propylene glycol is toxic for humans and is used in liquid detergents, paints, or coatings. Maya Chemtech stated that they did not know their propylene glycol was used to make cough syrups.

Marion Biotech: The Cough Syrup Scandal

Marion Biotech, a pharmaceutical company in India, came under scrutiny when it was revealed that they had been exporting cough syrups without testing for more than 10 years. The then head of operations, Tuhin Bhattacharya, admitted to this negligence, leading to the suspension of Marion Biotech’s registration certificate by the Pharmaceutical Export Promotion Council of India.

Legal Action Against Marion Biotech

In December 2022, the authorities in Uttar Pradesh cancelled Marion Biotech’s manufacturing license due to the scandal. Subsequently, in March 2023, three employees of the company were arrested following an FIR lodged against directors Sachin Jain and Jaya Jain.

Twists in the Tale

UP police officer Vijay Kumar revealed that the arrested employees were later released on bail. The case took a surprising turn when the Allahabad High Court issued an order stating that unless there is a conviction, the directors Sachin Jain and Jaya Jain cannot be arrested.

Reopening of Marion Biotech’s Factory

In October 2023, it was reported that Marion Biotech had been allowed to reopen its factory after the Uttar Pradesh government issued an order on September 14. However, the company was prohibited from manufacturing products containing propylene glycol, but allowed to continue producing and selling other products.

Similar Incidents in the Pharma Industry

This is not an isolated case of pharmaceutical malpractice. In September 2023, in Udhampur district of Jammu and Kashmir, a tragic incident occurred where around 12 children lost their lives after consuming contaminated medication. Some of the victims were as young as 2 months old, highlighting the urgent need for stricter regulations and oversight in the pharmaceutical industry.

The Pharma Files

Old. They ded because they drank a cough syrup which had a high amount of diethylene glycol. This cough syrup was made by Digital Vision, Pharma Company. And when it was tested, it was found that they were using industrial grade ingredients in their medicines too. Despite the deth of so many children, it took 3 years to file a charge sheet in this case. And, according to this article, even though its been 4 years since the incident, no one was found guilty for this. But before this incident this Digital Vision, Pharma Company, was given several warnings. The drug regulators of Maharashtra and Gujarat had issued at least 16 warnings to the company.

Failing Quality Tests

In December 2023, the Central Drug Standard Control Organisation tested the samples of different cough syrups. It was found that 54 pharma companies had failed the export quality tests for the cough syrups. For years, our country has the reputation of being the Pharmacy of the World. But first those 3 companies brought down this reputation and then, when the samples of cough syrups from these 54 companies were analysed, what impact would it have on the country’s reputation.

Government Inaction

After hearing all this you might feel that, since our government cares about the country and its people, they must have taken some action about it. Definitely. They must have tried to make quality control stricter. They must have passed laws to improve the quality of medicines. But no, what kind of laws did the government pass? Actually Read this article from the Hindustan Times from August 2023.

Bill to Ease Penalties for Low Quality Drugs

The government recently passed a bill in Parliament that seeks to ease penalties for companies producing low quality drugs. The Jan Vishwas Bill decriminalises minor offences committed by pharmaceutical companies, ultimately reducing the burden of penalties on such entities.

Public Health Activist’s Concerns

Not everyone is pleased with this development. Public health activist Dinesh Thakur has raised concerns about the bill, stating that offences related to drug quality should not be decriminalised. Thakur believes that maintaining strict penalties for such violations is crucial for safeguarding public health.

Amendment to Section 27D of the Drugs and Cosmetics Act

One of the most contentious aspects of the bill is the amendment to Section 27D of the Drugs and Cosmetics Act. Previously, companies failing lab tests could face imprisonment of 1 to 2 years. However, under the new amendment, companies can opt for out-of-court settlements by paying a fine, effectively bypassing the possibility of imprisonment.

Electoral Bonds and Pharma Companies

Glenmark and Cipla are not the only pharmaceutical companies that have faced scrutiny for substandard drugs and donations through electoral bonds. Maharashtra’s FDA issued 6 notices to a company named Hetero, with 3 of them pertaining to their Remdesivir medicine. Other violations were related to an antifungal drug, a bacterial infection drug, and the Itbor capsule.

Questionable Actions by Pharmaceutical Companies

A former Joint Commissioner of Drugs pointed out that in cases of multiple violations by a company, the manufacturing license should have been revoked. However, in the case of Hetero, the company discreetly recalled the medicines and made donations through electoral bonds.

During the time BrS was in power in Telangana, the Hetero group donated a significant amount to the political party through electoral bonds. In return, the founder and chairmen of the company were appointed to Rajya Sabha seats by BrS. When BJP regained power in Maharashtra, they cashed in on electoral bonds worth 150 million from the same company.

Modi’s Shameless Response

Prime Minister Modi’s response to questions about electoral bonds was nothing short of shameless. When asked about the imperfections in the system, he simply brushed it off by saying that systems aren’t always perfect and shortcomings can be improved upon. He even tried to take credit for the transparency brought about by electoral bonds, claiming that it was his initiative that allowed the public to trace the flow of funds. This, however, was far from the truth.

The Secret Funding Method

Electoral bonds were a covert political funding method that kept the source of donations hidden from the public eye. It was only when the Supreme Court intervened and declared the system unconstitutional that the truth came to light. If it weren’t for the court’s decision, political parties would have continued to operate this scheme under the radar.

Investigative Journalism at Work

The revelations about pharma companies donating a staggering 9.45 billion to political parties would not have come to light without the hard work of investigative journalists. Project Electoral Bond, a collaborative effort of Newslaundry, Scroll, The News Minute, and other independent journalists, delved deep into the matter and unearthed crucial information that exposed the corruption and deceit surrounding electoral bonds.

The Electoral Bonds Scam

The electoral bonds scam is a major controversy surrounding the political funding system in India. These bonds were introduced by the government in 2018 as a way to promote transparency in political donations. However, it appears that these bonds have been misused by various entities, including pharmaceutical companies.

The Pharma Files

Recently, investigative journalist Dhruv Rathee uncovered a scheme where pharmaceutical companies were allegedly purchasing electoral bonds in exchange for favorable policies from the government. These companies were reportedly making large donations to political parties through these bonds, in order to influence decision-making in their favor.

Impact on Public Health

This scandal has raised serious concerns about the influence of corporate entities on public health policies in India. The pharmaceutical industry is already known for its aggressive marketing tactics and push for profit over public health. The revelations about their involvement in the electoral bonds scheme only serve to further erode public trust in the sector.

Government Accountability

The electoral bonds scam also highlights the lack of accountability and transparency in the political funding system. By allowing companies to make anonymous donations through these bonds, the government has created a loophole for corruption and undue influence. It is imperative that stricter regulations be put in place to prevent such abuses in the future.

Call for Action

Civil society groups and activists are calling for a thorough investigation into the electoral bonds scam and for those responsible to be held accountable. It is crucial for the government to demonstrate its commitment to upholding democratic values and ensuring that political decisions are made in the best interest of the public, rather than for the benefit of a few powerful corporations.

Click here to watch the full expose by Dhruv Rathee and stay informed about this critical issue affecting Indian democracy.

If the information shared in this video about the pharma files and electoral bonds scandal has shocked you, I urge you to watch my previous video on the topic for more eye-opening revelations. It is essential to stay informed about such matters and hold those in power accountable for their actions.

Electoral Bonds Scam: The Pharma Files | Dhruv Rathee

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