Pharma Companies Giving Free Things To Doctors Are Prohibited

Pharma companies giving free things to doctors are prohibited by law: Supreme Court.

The Supreme Court on Tuesday said that giving free items to doctors by pharma companies to increase sales of drugs is expressly prohibited in law.

Along with this, the apex court dismissed the petition of Apex Laboratories Pvt Ltd.

In this, the company had demanded deduction of tax under the Income Tax Act on the expenditure incurred on giving free things to doctors.

Justice UU Lalit and Justice S. Ravindra Bhat said, “It is a matter of public importance and great concern.”

When it comes to the notice that in return for gifts like gold coins, refrigerators, LCD TVs to foreign travel, to a doctor, the consultation can be rigged.

Justice Bhat, who wrote the judgment on behalf of the bench, said that free things are not technically free.

Usually, these freebies are included in the price of the drug which increases their cost thereby creating a perpetually dangerous cycle for the people.

The bench said that the Parliamentary Standing Committee on Health and Family Welfare had also taken cognizance of the advice of such drugs in lieu of effective generic medicine.

The top court said that a doctor has a relationship of trust with his patient.

A doctor’s consultation is considered final in the treatment of a patient, even if the cost is beyond the patient’s ability or is barely accessible, this is the level of trust the patient has in the doctor.

No one should be allowed to profit from wrongdoing. The bench said that the doctor is prohibited from receiving such gifts or things free of cost and the restriction on the giver or the donor is not less.

The top court made these observations while dismissing the appeal of Apex Laboratories challenging the Madras High Court order.

The High Court had refused to interfere with the decision of the Income Tax authorities.

Income Tax officials had refused to give tax benefits on expenses incurred by the company on the items distributed free of cost.