Revealed: How Dolo-650 became India's favourite painkiller - 'gifts' worth millions

Dolo-maker Micro Labs Ltd. has been charged by the Central Board of Direct Taxes (CBDT) with engaging in "unethical practises" and providing doctors and other medical professionals with free gifts worth roughly USD 125 million (INR 1,000crore) in exchange for endorsing the company's products. PTI reports that the claims followa raid on 36 Micro Labs Ltd. located across nine states by the Income Tax authorities on July 6 and that although the group was not named in the CBDT statement, sources revealed it was Micro Labs.CBDT said in a statement that following the action against the Bengaluru-based pharma company, the agency seized "unaccounted" cash totalling $150,000(INR 1.20 crore) and gold and diamond jewellery worth $175,000 (INR 1.40 crore).

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"The initial gleaning of the evidence has revealed that the group has been debiting in its books of account unallowable expenses on account of the distribution of freebies to the medical professionals under the head 'sales and promotion'," said the Indian I-T department's administrative body.

"During the course of the search operations, substantial incriminating evidence, in the form of documents and digital data, has been found and seized."

The CBDT also accused the firm of other irregularities.

"Various other means of tax evasion, including inadequate allocation of research and development expenses to eligible units and inflated claim of weighted deduction under section 35 (2AB), have also been detected," the CBDT said.

Reportedly, the department also discovered instances of "violation" of the tax deduction at source (TDS) rules under section 194C of the I-T Act.

Dolo-650 is an oral tablet that is both an analgesic (used to treat pain) and an antipyretic (used to treat fever) that doctors and medical store owners frequently give to coronavirus patients to treat their typical symptoms of pain and fever.

(With inputs from agencies)

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