HC strikes down FIR against pharma major over BMC’s Covid drug purchase
High Court Dismisses FIR Against Mylan in BMC Remdesivir Procurement Case
Allegations Fail to Establish Cognizable Offence
Bharatmorningnews.com – The Bombay High Court has set aside a First Information Report filed against pharmaceutical giant Mylan Laboratories Ltd. The legal challenge concerned supposed procedural violations in the Brihanmumbai Municipal Corporation’s acquisition of Remdesivir injections throughout the coronavirus crisis. Justice Ashwin Bhobe determined that the claims presented failed to reveal a cognizable offence against the pharmaceutical firm.
The original complaint was documented at the Agripada police station on October 20, 2023. It named Mylan alongside several BMC functionaries under various sections of the Indian Penal Code. These included charges of criminal breach of trust, cheating, criminal conspiracy, and common intention among the accused parties.
“Taking the allegations in the impugned FIR, as made, they do not disclose the commission of a cognizable offence against the Petitioner (company),” the court stated in its order.
Tender Irregularities and Financial Loss Claims
The legal action emerged from accusations surrounding multiple procurement tenders initiated by the municipal corporation during the health emergency. Officials from the Central Purchase Department were accused of colluding with Mylan, which provided the medication at prices between ₹650 and ₹2,626 for each vial. According to the complaint, these dealings resulted in a financial shortfall of ₹5.96 crore for the civic body.
Mylan petitioned the high court requesting the FIR’s cancellation, pointing out that comparable accusations had already undergone scrutiny by the Maharashtra Lokayukta. The pharmaceutical company’s legal representative informed the bench that the anti-corruption authority completed a thorough investigation.
The Lokayukta concluded on March 3, 2025, that no corruption occurred in the BMC’s Remdesivir procurement. The tender methodology was deemed transparent, with rising costs linked to increased market demand.
Abuse of Legal Process Argument
Legal counsel for Mylan contended that the accusations leveled before the Lokayukta matched those underlying the current FIR. They argued that pursuing criminal action after the Lokayukta’s conclusions would constitute misuse of judicial procedures. The court acknowledged that both the Lokayukta complaint and the FIR rested on the same set of allegations regarding the drug purchase from Mylan.
Justice Bhobe determined that the circumstances justified invoking the high court’s inherent powers under Section 482 of the Code of Criminal Procedure. Consequently, the court formally quashed the FIR against the pharmaceutical company, bringing an end to the criminal proceedings in this matter.
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