Chemists vs online pharmacies: A six-year long legal battle explained

The legal battle dates back to August 2018, when the Centre issued a draft notification for online drug sales.

The Chemists' Association is engaged in an ongoing legal dispute over the online sale of medicines. The controversy had first surfaced during a hearing with petitions from the South Chemists and Distributors Association (SCDA) and other related groups in the Delhi High Court (HC). These petitions argued that online drug sales infringe upon the Drug and Cosmetics Act, 1940, and the Pharmacy Act, 1948.

The Delhi HC, in its hearing, had previously instructed the Central government to create guidelines for online drug sales. Despite multiple extensions, the government is yet to finalise these regulations.

After a slew of hearings for nearly six years, in March 2024, the Delhi HC granted the government a final four-month extension to draft the policy, warning that failure to meet this deadline would lead the court to address the case on its merits. This order came from a division bench comprising Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora, acknowledging the Ministry of Health and Family Welfare’s request for additional time due to the complex nature of the issue.

The Ministry had argued that regulating online drug sales is challenging and requires amendments to various laws and regulations, including the Drugs and Cosmetics Act, 1940, and the Pharmacy Act, 1948. It had stated that these changes would have significant implications and require thorough consideration and sought an extension from the Court for drafting a policy.

However, on July 8, the Centre informed the Delhi HC that it had missed the deadline for finalising the policy. This development led the court to continue hearings on petitions asserting that online drug sales violate existing laws. The next hearing is scheduled for September 3.

Background of the Legal Dispute

The legal battle dates back to August 2018, when the Centre issued a draft notification for online drug sales. This move was, however, challenged in court soon after, with petitions arguing that online sales of drugs and prescription medicines are illegal and unauthorised. In December 2018, the High Court ordered the suspension of online medicine sales by e-pharmacies, stating that such sales were not permitted under current laws.

Following this, in February 2019, the Delhi HC sought clarity from the Centre on the steps taken to formulate a policy regulating online drug sales. Later, in April 2019, a contempt petition was filed, claiming that online sales continued in violation of the court’s stay order from December 2018, prompting the court to issue a notice to the Central government.

In January 2020, the court requested a status report on the policy’s progress. In May 2023, the government announced plans to take action against those violating the December 2018 stay order.

Nevertheless, in November 2023, the Centre stated that consultations were ongoing and again requested additional time, citing the complexity of the issue and the need for extensive legal changes. The court responded by instructing the Joint Secretary responsible for the policy to appear in court if the policy was not completed by the stipulated deadline. The Joint Secretary appeared in March 2024, and the government was granted a final extension to draft the policy by July 8.