SC throws out PIL against Ranbaxy over substandard drug issue

The Supreme Court today dismissed a public interest litigation (PIL) against Ranbaxy Laboratories for alleged manufacture and sale of substandard drugs in the country, saying the petitioner has failed to bring any evidence against the company.

An advocate named M L Sharma had filed the PIL against Ranbaxy alleging that the pharma major was manufacturing and selling adulterated medicines in the country.

According to the petition, Ranbaxy was fined $500 million by the US Food and Drug Administration for making and selling adulterated drugs. It sought sealing of all Ranbaxy manufacturing units, including those in Paonta Sahib in Himachal Pradesh and Dewas in Madhya Pradesh.

The petitioner also wanted action to be taken against the government and the pharmaceutical sector regulator, the Central Drug Standards Control Organisation (CDSCO), for permitting Ranbaxy to sell drugs in India, especially in the wake of the results of the USFDA probe against the company.

Ranbaxy, the largest drug maker in India, is under attack, both because of its size and reach and the threat its generic drugs pose to the patent drugs lobby, especially in the West.

Last week, the European Commission also fined Ranbaxy €10 million (Rs80 crore) for blocking the supply of a cheaper anti-depressant drug in the market (See: European regulator fines Ranbaxy and 8 others for blocking generic drugs). Ranbaxy said it plans to appeal to the EU General Court in Luxembourg against the EC's decision.

Shares of Ranbaxy Laboratories Ltd, turned positive after earlier falling as much as 7.4 per cent after the SC threw out the PIL against the company.