Tata 1mg, Flipkart, Amazon among 20 e-pharmacies served DGCI notice for violating drug rules

Representative Image

The Drug Controller General of India (DCGI) on February 10 served show cause notice to 20 e-pharmacies in the country. The drug regulator has asked online pharmacies to explain why action should not be taken against them for selling and distribution drugs in contravention of provisions of Drugs and Cosmetics Act 1940.

VG Somani, the DCGI, in a notice, seen by Moneycontrol, has told the e-pharmacies that there are several cases in various courts requesting prohibition of online sale of drugs.

Tata1mg, Flipkart Health+, and Amazon are among the ones who have been sent the show cause notice but refused to comment on it.

The notice from the drug regulator states that the sale, or stock or exhibit or offer for sale or distribution of drugs through online, internet or other electronic platforms without a license have potential impact on quality of drugs and pose risk to the public health due to potential misuse of drugs through self-medication, indiscriminate use of the drugs.

"In view of above, you are hereby asked to show cause within 02 days from the date of issue of this notice, why action shall not be taken against you for sale, or stock or exhibit or offer for sale or distribution of drugs in contravention of the provisions of the Drugs and Cosmetics Act, 1940 and Rules made thereunder," the notice of DCGI to e-pharmacies said.

Somani said that if the company didn't no reply to the notice, it will be presumed that they have nothing to say in this matter, and necessary action shall be initiated against them without any further notice.

The apex drug regulator has quoted the order by Delhi High Court in the matter of Dr. Zaheer Ahmed Vs Union of India and others.

The notice copy to e-pharmacies mentions the excerpt from order saying "Respondents are injuncted from online sale of medicines without licence and the respondents are directed to ensure that the same is prohibited forthwith until further orders."

The DGCI has said that even after the instructions from apex regulator for compliance of the order of Delhi High Court, the e-pharmacies were found to be engaged in selling medicines online without license.

Somani in the notice has said that he has received various representations on concerns regarding sale of drugs through online, internet or other electronic platforms including various mobile applications, in contravention to the provisions of the Drugs and Cosmetics Act, 1940 & Rules there under.

"The Rule 64 of the Drugs Rules, 1945, prescribes conditions to be satisfied before a sale license is granted; while Rule 65 prescribes the conditions of the license to be complied by the licensee," the notice copy said.

DCGI's letter said that under Rule 62, if the drug is sought to be sold or stocked for sale at more than one place, separate application is to be made to the licensing authority for grant of license.

"Thus, for sale, or stock or exhibit or offer for sale or distribute any drug, a license is required to be obtained from the concerned State Licensing Authority and conditions of license are required to be complied by the licensee," it added.

Moneycontrol reached out to leading e-pharmacy firms for a response on the notice from DCGI, but didn't get a response from them.

The All India Organisation of Chemists and Druggists (AIOCD) has welcomed the notice from the regulator saying the online retailers were adopting alleged unethical practices of flouting rules by competing with predatory pricing and giving discount offers more than the margin available to trade.

"AIOCD welcomes this decision and expect suitable actions against corporate houses backed e-pharmacies, and predatory pricing policy posing threat to existence of small business owners," Rajiv Singhal, General Secretary, AIOCD said.