No Bail for Pharma Firm Owner Accused of Producing Spurious Drugs

Justice Virender Singh delivered the judgment, emphasizing the gravity of the alleged offenses and their impact on public health.

Avaindra Shukla was arrested on October 6, 2023, following a complaint by the Drugs Inspector, Headquarters Baddi. The case stemmed from a raid conducted on June 29, 2023, by a team from the Food Safety and Standards Authority of India (FSSAI). During the inspection, it was discovered that the firm's manufacturing license had expired on January 27, 2023, and the premises were being used to store a substantial quantity of allopathic drugs.

Samples of the seized drugs, including Amoxus-500 Capsules, Doxtil-200 Tablets, MEF-200 Tablets, Zathron-500 Tablets, Roxim-500 Tablets, and Ampicillin-500 Capsules, were sent to the Regional Drugs Testing Laboratory in Chandigarh. Analysis revealed that five of the six drugs contained 0.00% of the claimed active ingredients, while the sixth drug had only 83.71%, falling far below acceptable standards.

Shukla’s defense team, led by Advocates Narender Guleria and Adhiraj Thakur, argued that he was innocent and claimed that the investigation had been completed, leaving no grounds for his continued detention. They also alleged procedural irregularities in the search and seizure operations and cited the applicant’s deteriorating health due to chronic diabetes and a physical disability as humanitarian grounds for bail.

The prosecution, represented by Additional Advocates General H.S. Rawat, Mohinder Zharaick, and Tejasvi Sharma, opposed the bail application. They highlighted the severity of the offense, pointing out that the drugs were linked to fictitious manufacturers and posed a significant risk to public health. The prosecution argued that granting bail could encourage other manufacturers to engage in similar unlawful activities.

Justice Virender Singh noted the seriousness of the allegations and the potential harm caused by the spurious drugs. He observed;

“As per the stand, taken by the Drugs Inspector, in this case, despite expiry of licence, on 27.01.2023, the firm M/s Glenmars Healthcare was dealing with the allopathic drugs and as per the report of the laboratory, the recovered drugs were found to be of substandard/spurious quality and not stated to be manufactured, as mentioned, on the drugs, which were found in the premises. This fact is sufficient to point out the seriousness of the offence.”

“Huge quantity of drugs, i.e. Amoxus-500 capsules (69 boxes), Doxtil-200 tablets (79 boxes), MEF200 tablets (100 boxes), Zathron-500 tablets (26 boxes), Roxim-500 capsules (66 boxes) and Ampicillin-500 capsules (19 boxes), were found from the said premises. The recovery of huge quantities of substandard and spurious drugs speaks volumes about the seriousness of the offense. Releasing the applicant on bail would send a wrong signal to society and potentially encourage others to engage in similar activities.”

Additionally, the court noted;

“Even otherwise, the release of the applicant, on bail, will also encourage other drug manufacturers to indulge in preparation/marketing of substandard/ spurious drugs to earn easy money.”

“Moreover, the affect of the spurious drugs on the persons, who used to consume the same, in the hope and faith, is also one of the major factor, which cannot be ignored by this Court, at this stage.”

The court dismissed the argument that Shukla’s health condition and disability warranted bail, observing that his 15% disability did not classify him as “ill” or “infirm” under Section 36AC of the Drugs and Cosmetics Act.

The court further emphasized that five of the six drugs tested had no active ingredients, describing this as a clear indication of the severity of the offense. It noted;

“The report of the Government Analyst, Regional Drugs Testing Laboratory, Chandigarh, which has been reproduced above, also speaks voluminously about the seriousness of the offence, as, percentage of the actual contents, as per the analysis report, was 00.00% in five drugs, mentioned at Sr. No.1 to 5, whereas, in the drug, mentioned at Sr. No.6, the same was found to be 83.71%.”

Subsequently, the court dismissed the bail application. It held;

“Considering the seriousness of the allegations, the harm caused by the spurious drugs, and the potential for reoffending, the applicant has not made a case for bail. Granting bail in such cases would erode public confidence in the legal system and jeopardize public health.”

Justice Singh also noted that Shukla had a pending case from 2020 involving similar allegations, which further undermined his claim for bail.

To view the court judgement, click on the link below: