A report of the Indian Parliament concluded that there is collusion between pharmaceutical laboratories and the service which permits the placing on the market of drugs (Central Drugs Standard Control Organization - CDSCO). The Indian Government said on May 10, 2012 that he would initiate an investigation.

© thejournalofregulation

If we use the assumption that the findings of the Parliamentary report are accurate - that the governmental inquiry then undoubtedly judicial investigation will confirm-, the case is the best example of a capture. Indeed, it is perfect example in its effects and its conditions. It is a perfect example in its effects, because here there are drugs placed on the Indian market without initial testing (and therefore perhaps dangerous for the population) and some of drugs are prohibited in other countries (therefore probably very dangerous for the population).

This shows that the capture of the regulator is a disaster that can cost lives. The way is of course, corruption of responsible members of the regulatory authority. Here, the regulator is not independent of the Ministry of Healthcare, but precisely this should have protected public servants, less isolated. It was not enough. Here it’s not the simplest case of capture by corruption of money; pharmaceutical industries have lots of money, public servants have little money. The report indicated that also the records of place on the market were based on the expert advice that was written by other than the signatories, "the invisible hands", experts simply sign the documents. This brings into a much more difficult problem in capture: those of experts