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Biocon Biologics Bribery Case: Govt Grants Sanction To Prosecute Joint Drugs Controller S Eswara Reddy

The government has permitted the sanction to bring suit against the Central Drugs Standard Control Organisation's joint drugs controller, S Eswara Reddy, for initiating a trial against him for purportedly taking a bribe for recommending Biocon Biologics' insulin injection, as apparently conveyed by the officials to the media.

Previously, the CBI had submitted the sanction for prosecution before a special court here, as accorded by the Director (Vigilance) in the Union Ministry for Health and Family Welfare.

Animesh Kumar, Assistant Drugs Inspector, who is a co-accused in the case, has also received the sanction.

The CBI had also apprehended Biocon Biologics' Associate Vice President L Praveen Kumar, Synergy Network India Private Limited director Dinesh Dua, who apparently offered Reddy Rs 4 lakh as a bribe, and Guljit Sethi, an alleged conduit of Biocon Biologics.

In June last year, arrests were made in the bribery case purportedly to dodge the Phase 3 clinical trial of 'Insulin Aspart' injection, a product developed by the company to manage Type 1 and Type 2 diabetes.

Biocon Biologics, a subsidiary of Kiran Mazumdar Shaw-led Biocon, has denied the allegations of bribery.

Reddy was suspended until the health ministry restored him as the joint drug controller.

The charge sheet was filed by the agency in August last year against the accused persons. However, to commence the trial, getting the sanction for prosecution is a requisite before proceeding a case against a government servant under the Prevention of Corruption Act. This sanction was anticipated before, as conveyed by the sources to the media.

As per the August charge sheet, the agency alleged the bribe payment was made to Reddy after clearance from associate vice president of Biocon Biologics L Praveen Kumar, according to information in the media.

In response to the August charge sheet, the company conveyed that it follows global best practises in regulatory science. This in turn has bestowed on them the distinction of being the only Indian company with the largest number of regulatory approvals for Biosimilars in ICH countries like the USA, Canada, the EU, and Japan, amongst others, the company stated. 

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