CBI court acquits ex-joint drug controller in Biocon bribe base in 2022

A special Central Bureau of Investigation (CBI) court on Rouse Avenue on Saturday released Dr. S. Eswara Reddy, a former joint drug controller in the Central Drugs Standard Control Organization (CDSCO), and three others in a 2022 bribery case linked to Bengaluru-based Biocon Biologics Ltd.

Mint had earlier reported on the arrest of Reddy by the Central Bureau of Investigation (CBI) on charges of demanding and accepting bribes to get regulatory clearances. Reddy has been shortlisted for the top post of Drug Controller General of India (DCGI) in 2022.

In a 60-page order, the court said the allegations did not raise even a mere suspicion, let alone serious suspicion, and ruled that The CBI could not establish a prima facie case warranting a trial. The accused were discharged under Section 250 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (Section 227 of the Penal Code).

The court ruled that the prosecution had not provided any direct or circumstantial evidence of a bribe request – a mandatory requirement under Section 7 of the Prevention of Corruption (PC) Act. Noting that both the demand and acceptance of a bribe are absolute prerequisites to prove a crime, the judge noted that the agency had failed to prove “when, where and how” Reddy allegedly sought ₹9 lakhs.

After evaluating the totality of the circumstances of the case, the court held: “The totality of the circumstances… enables this Court to conclude that there is no prima facie case against accused No. 1 Dr. S. Eswara Reddy and he is entitled to be discharged from this case.”

“I have always maintained full confidence in the judicial process and this release order comes as a significant relief,” Reddy said. Inquiries sent by e-mail to the spokesperson of the Union Ministry of Health and Family Welfare, Biocon, CDSCO and CBI remained unanswered at the time of publication on Saturday evening.

“No Evidence of Criminal Conspiracy”

The court also found no evidence of criminal conspiracy under Section 120B of the Indian Penal Code (IPC). The court rejected allegations that Reddy improperly expedited the waiver of Biocon’s Phase III clinical trials for the “Insulin Aspart” injection, pointing out that the proposal reached the subject matter expert committee (SEC) through standard official emails without Reddy’s intervention.

The court also found insufficient material to prove a criminal conspiracy or to show that Dr. Reddy improperly or dishonestly performed his official duties in exchange for an undue advantage.