HC strikes down FIR against pharma major over BMC’s Covid drug purchase

The FIR followed allegations of irregularities in multiple tenders floated by the BMC during the pandemic to procure Remdesivir injections

MUMBAI: The Bombay High Court has quashed an FIR against pharma major Mylan Laboratories Ltd over alleged irregularities in the BMC’s purchase of Remdesivir injections during the Covid-19 pandemic, observing that the allegations did not disclose a cognizable offence against the company.

HC strikes down FIR against pharma major over BMC’s Covid drug purchase

Justice Ashwin Bhobe quashed the FIR registered at Agripada police station on October 20, 2023, against Mylan and some BMC officials under provisions of the Indian Penal Code relating to criminal breach of trust, cheating, criminal conspiracy and common intention.

“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 said.

The FIR followed allegations of irregularities in multiple tenders floated by the BMC during the pandemic to procure Remdesivir injections. It was alleged that officials of the civic body’s Central Purchase Department had conspired with the company, which supplied the injections at rates ranging from ₹650 to ₹2,626 per vial. The alleged transactions were said to have caused a loss of ₹5.96 crore to the civic body.

Mylan approached the high court seeking to quash the FIR, saying similar allegations had already been examined by the Maharashtra Lokayukta.

The company’s counsel told the court that the Lokayukta had conducted a detailed inquiry and, on March 3, 2025, concluded that there was no corruption in the procurement of Remdesivir by the BMC. The tender process was found to be transparent, while the increase in prices was attributed to heightened market demand, the counsel submitted.

The company argued that the allegations before the Lokayukta and those forming the basis of the FIR were identical. Continuing the criminal proceedings despite the Lokayukta’s findings would therefore amount to an abuse of the process of law, it submitted.

The court noted that the complaint before the Lokayukta and the FIR were based on identical allegations concerning the BMC’s purchase of Remdesivir from Mylan.

Justice Bhobe concluded that the case warranted the exercise of the high court’s powers under Section 482 of the Code of Criminal Procedure and quashed the FIR against the company.