The Parliamentary Standing Committee on Health and Family Welfare tabled a Report in Parliament on May 8, 2012, on the functioning of the Central Drugs Standard Control Organization (CDSCO).  CDSCO is the agency mandated with the regulation of drugs and cosmetics in India.  The Report covers various aspects of drug regulation including organizational structure and strength of CDSCO, approval of new drugs, and banning of drugs, among others. Following the Report, the Minister of Health and Family Welfare has constituted a Committee to look into the procedure for drug regulation.  The Committee is expected to make its submissions within a period of two months. This post focuses on irregularities in the approval of new drugs by CDSCO.  It discusses the regulations relating to drug approval and the Standing Committee's observations on the working of CDSCO. Approval of new drugs Drugs are regulated by the Drugs and Cosmetics Act, 1940 and Drugs and Cosmetic Rules, 1945 [Rules].  The CDSCO, under the Ministry of Health and Family Welfare, is the authority that approves new drugs for manufacture and import.  State Drug Authorities are the licensing authorities for marketing drugs. New Drugs are defined as:

  • drugs that have not been used in the country before,
  • drugs that have been approved by a Licensing Authority but are now being marketed for different purposes, and
  • fixed dose combinations of two or more drugs that have been individually approved before but are proposed to be combined in a fixed ratio that has not been approved.

The Rules require an applicant for a new drug to conduct clinical trials in India to determine the drug’s safety and efficacy.  These trials are necessary for both domestically manufactured and imported drugs.  However, the authority can exempt a drug from the requirement of local and clinical trials in the public interest based on data available in other countries. Observations and recommendations of the Committee The Committee found that a total of 31 new drugs were approved between January 2008 and October 2010 without conducting clinical trials on Indian patients.  The Report mentioned that drug manufacturers, CDSCO officials and medical experts colluded to approve drugs in violation of laws.  Following are some of the Report’s findings:

  • Under the Rules, the Drugs Controller General (India) (DCGI), the head of CDSCO, can clear sites of clinical trials after ensuring that major ethnic groups are enrolled in these trials to have a truly representative sample.  This rule was violated by the DCGI when sites for clinical trials were approved without ensuring diversity.  The Committee recommended that the DCGI approve sites for trials only if they cover patients from major ethnic backgrounds.
  •  The Report found that certain actions by experts were in violation of the Code of Ethics of the Medical Council of India.  A review of expert opinions revealed that several medical expert recommendations had been given as personal opinions rather than on the basis of scientific data.  Additionally, many expert opinions were written by what the Report calls ‘the invisible hands’ of drug manufacturers.  The Committee recommended that CDSCO formulate a clear set of written guidelines on the selection process of experts with emphasis on expertise in the area of drugs.
  •  The Rules ban the import and marketing of any drug whose use is prohibited in the country of origin.  CDSCO violated this rule by approving certain Fixed Dose Combination drugs for clinical trials without considering the drugs’ regulatory status in their respective country of origin.  Drugs such as Deanxit and Buclizine, which have been prohibited for sale and use in their countries of origin, Denmark and Belgium, respectively, were approved for clinical trials.  The Committee recommended an inquiry into the unlawful approval of these drugs.
  • The Rules require animal studies to be conducted for approval of a drug for use by women of reproductive age.  CDSCO violated this rule in approving Letrozole for treating female infertility.  Globally the drug has only been used as an anti-cancer drug for use among post-menopausal women.  The drug has not been permitted for use among women of reproductive age because of side effects.  The Committee recommended that responsibility be fixed for unlawfully approving Letrozole.
  •  Rules require Post-marketing Safety Update Reports (PSURs) on drugs to be submitted to CDSCO.  PSURs are used to collect information on adverse effects of drugs on Indian patients as a result of ethnic differences.  When asked by the Committee to furnish PSURs on 42 randomly selected new drugs, the Ministry was able to submit PSURs for only 8 drugs.  The Report contended that this action reflected a poor follow-up of side effects on Indian patients.  The Committee recommended that manufacturers of new drugs be warned about suspension of marketing approval unless they comply with mandatory rules on PSURs.

There are indications that the Lok Pal Bill, 2011 is likely to be taken up for consideration and passing during the current Winter session of Parliament.  The Bill was introduced on Aug 4, 2011 in the Lok Sabha after a prolonged agitation led by Anna Hazare (see PRS analysis of the Bill).  It was referred to the Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice (see PRS note on Committee Systems).  The Committee submitted its report on December 9, 2011.  The report includes 10 dissent notes from 17 MPs. (a)    Kirti Azad, Bal Apte, D.B. Chandre Gowda, Harin Pathak, Arjun Ram Meghwal, and Madhusudan Yadav. (b)   Ram Jethmalani (c)    Ram Vilas Paswan (d)   Shailendra Kumar (e)    Prasanta Kumar Majumdar (f)     Pinaki Misra (g)    A. Sampath (h)    S. Semmalai (i)      Meenakshi Natrajan, P.T. Thomas, and Deepa Dasmunshi (j)     Vijay Bahadur Singh Presently, the government and the Opposition are in the process of formulating their stands on various key issues such as inclusion of the Prime Minister, the lower bureaucracy and the role of the Central Investigation Bureau.  We provide a broad overview of the views of the members of the Committee on various key issues. Unanimity on issues On some issues, there was unanimity among the Committee members:

  • Constitutional status for Lokpal.
  • Immunity from prosecution for the MPs for any vote and speech in the House
  • Exclusion of judiciary from the ambit of the Lokpal.
  • Qualification of chairperson and Lok Pal members.
  • Selection process of Lok Pal members.
  • Lokpal should not have the powers to tap phones.

Dissent on issues Certain members of the Committee dissented on specific issues.  In Table 1, we list the issues and the reason for the dissent. Table 1: Recommendation of Standing Committee and dissent by individual MPs

Issues Standing Committee recommendations Points of dissent Dissenting MPs
Inclusion of Prime Minister Committee left the decision to Parliament stating that there are pros and cons to each view. -     PM should be included.  -     PM should be brought under the Lok Pal with some exceptions for national security, foreign policy, atomic energy etc. -     The decision to investigate or prosecute the PM should be taken by the Lok Pal with 3/4th majority. -  Prasanta Kumar Majumdar, A. Sampath.  -  Kirti Azad etc, Shailendra Kumar, Pinaki Misra.      
Grievance redressal mechanism Enact separate law for a grievance redressal mechanism. Include in the Lok Pal Bill. Kirti Azad etc, Ram Jethmalani, Shailendra Kumar.
Inclusion of bureaucracy Include Group B officers in addition to Group A. -     Include all groups of govt employees.  -     Include Group ‘C’. -     Do not include bureaucrats. -     Kirti Azad etc, A. Sampath.  -     Meenakshi Natrajan etc, Shailendra Kumar, Prasanta Kumar. Majumdar, Pinaki Misra, Vijay Bahadur Singh. -     Ram Vilas Paswan.
Lokayukta Single, central law to deal with Lok Pal and state Lokayuktas to ensure uniformity in prosecution of public servants. States should retain power to constitute Lokayuktas. -     S. Semmalai.
Private NGOs, media and corporate Include all entities with specified level of govt control or which receive specified amount of public donations or foreign donations above Rs 10 lakh. No private organsiations should be included. - Kirti Azad etc., Ram Vilas Paswan.
Composition of search and selection committees Selection Committee: In addition to PM and Speaker, it should include the Chief Justice of India, an eminent Indian unanimously nominated by the CAG, CEC and UPSC chairman and only Leader of Opposition of Lok Sabha.  Search Committee: Mandatory to constitute. Minimum 7 members with 50% members from SC/ST, OBC, minorities and women.   Selection Committee: PM, Minister, LoPs of both Houses, two judges and CVC. Search Committee: CJI, CAG, CEC, Cabinet Secretary, judges of Supreme Court and High Courts.  Selection Committee: PM, LoP in the Lok Sabha, one judge of SC and one Chief Justice of a HC, CVC, CEC and CAG. Search Committee: 10 members out of which 5 should be from civil society and 5 should be retired Chief Justice, CVC, CAG and CEC.  Half the members to be from SC/STs, OBCs, minorities or women. -  Kirti Azad etc.  -  Shailendra Kumar.
Removal of Lok Pal In addition to petitioning the President, a citizen should be allowed to approach the Supreme Court directly with a complaint.  If admitted, it would be heard by a 5 judge bench.  If President does not refer a citizen’s petition, he should give reasons. Investigation should be conducted by an independent complaint authority.  Heavy fines should be imposed in case of a false or frivolous complaint. Instead of the President, the Supreme Court should have power to suspend a member pending inquiry.    - Shailendra Kumar.
Role of CVC and CBI CVC should investigate Group C and D employees.  Instead of Lok Pal’s investigation wing, the CBI should investigate cases after inquiry by the Lok Pal.  CBI to have autonomy over its investigation.  Lok Pal shall exercise general supervision over CBI. CBI should be under the control of the Lok Pal.  The CBI Director should be appointed by the Lok Pal’s selection committee. The CVC should be under Lok Pal and the SVCs under the state Lokayuktas. -  Ram Jethmalani, Shailendra Kumar.  -  A. Sampath. -  Meenakshi Natrajan etc.
False and frivolous complaints Term of imprisonment should be maximum six months.  Amount of fine should not exceed Rs 25,000.  Specifically provide for complaints made in good faith in line with the Indian Penal Code. The term of imprisonment should not exceed 30 days. - Kirti Azad etc.
Article 311 Article 311 of the Constitution should be amended or replaced with a statute. The procedure adopted by the disciplinary authority should conform to Article 311. - Kirti Azad etc, Meenakshi Natrajan etc.   
Finance Lok Pal Bill states that all expenses of the Lok Pal shall be charged to the Consolidated Fund of India (no need for Lok Sabha clearance).  The Committee did not make any recommendation with regard to finances of the Lok Pal. Lok Pal’s expenses should be cleared by the Parliament.  Lok Pal should present its budget directly to Parliament rather than through a ministry. -  Kirti Azad etc.  -  Shailendra Kumar.
Sources: The Lok Pal Bill, 2011; the Department Related Standing Committee Report on the Lok Pal Bill, 2011 and PRS.