Centre orders a halt on sale of medicines online

In a major setback to e-pharmacies that have ploughed in millions of dollars to build an online pharmacy sector, the government has ordered a halt to online drug sales until further notice, as it works on rules to regulate the sector.

In a 28 November order, drugs controller general of India (DCGI) V.G. Somani directed all states and Union territories to prohibit the sale of medicines through unlicensed online platforms till draft rules to regulate e-pharmacies are finalized and put in place.

The DCGI’s letter cites a Delhi high court order dated 12 December 2018 after a case was filed by dermatologist Dr Zaheer Ahmed. The letter was sent by the DCGI to all state drug regulators and the Union health ministry for their information and action.

“As the e-pharmacy rules are at the draft stage, we have issued an order to stop online sales of medicines for now," said a senior official at the Central Drugs Standard Control Organization (CDSCO) under the health ministry. “The Delhi high court order had said that online sale of medicines should be prohibited. The e-pharmacy companies don’t have any licenses to sell medicines online."

According to the Delhi high court order, drugs were sold online in violation of the Drugs and Cosmetics (D&C) Act.

However, e-pharmacies continued to sell online, after securing a stay from the Madras high court.

E-pharmacies on the other hand have claimed that their business model is well covered by the Information Technology Act, 2000 under the concept of intermediaries, and that the pharmacy retail operations are covered by the Drugs and Cosmetics Act.

The online platform is not without “miscreants", operating mostly outside India and in some cases even local players who do not follow laws and medicines are sold without prescription or license.

According to the proposed rules, only government-registered e-portals can sell medicines, and they must retain prescriptions and verify the details of patients and doctors.