Delhi High court orders ban on online sale of medicines

The Delhi High Court has ordered for an all-India ban on the online sale of medicines. The order was issued on Wednesday, dated December 12, 2018  by a division bench of Chief Justice Rajendra Menon and Justice V Kameswar Rao. The Public Interest Litigation (PIL) was filed by Dr Zaheer Ahmed. The judgement comes a  day after the Madras High Court reserved its verdict after the final hearing in a similar case. Earlier in October, the Madras High Court had also issued a country-wide interim stay order on online pharmacies.

Nakul Mohta, who filed the petition on behalf of Dr Ahmed, said, “This was the second date of hearing. The Court has already issued notices to the respondents which include the government of India, Pharmacy Council of India, Central Drugs Standard Control Organisation, Drug Controller of Delhi, and Delhi Pharmacy Council.”

He added that someone on behalf of e-pharma companies tried to make a submission which the Court disapproved and asked them to be a party in the case first.

The court order is in response to a petition which stated that the sale of drugs and prescription medicines online was illegal and without any mandate of law and, therefore, a health risk. Unlike common items, drugs are highly potent and its misuse or abuse can have serious consequences on human health, not just for the one person consuming it but for humanity at large as some drugs can be addictive, habit-forming and harmful to the body. A large number of children/minor or people from uneducated rural background use the internet and can be victims of wrong medication while ordering medicines online.

E-pharma companies, however are respondents to a similar case, pending in Madras High Court. In September, Chennai-based online Pharma chain Netmeds raised $35 million in a series C funding from existing investors and medicine distributor and importer Daun Penh Cambodia Group (DPCG). The same month, online healthcare and Pharma aggregator Pharmacy also raised $50 million from Eight Roads Ventures India, the proprietary investment arm of Fidelity International. Subscription-based online pharmacy platform Life Care in July raised $11 million from SAIF Partners, Nexus Ventures, and Infrastructure Leasing & Financial Services Limited (IL&FS).

For the past two years, under the All India Organisation of Chemists and Druggists (AIOCD) banner, over 800,000 traditional medical shops have been protesting against the proliferation of e-pharmacies.

Commenting on the High Court’s order, Pradeep Dadha, founder and CEO of the epharma startup Netmeds.com said, “We are still awaiting a copy of the order that has been passed by the Delhi High Court.”

In September, the Union Health Ministry had come out with draft rules on sale of drugs by e-pharmacies with an aim to regulate online sale of medicine across india, provided that the the portal should be authenticated.

According to the draft guidelines that are yet to be formalised, e-pharmacies have to register for a licence with the Drug Controller General of India (DCGI), which will be valid for three years. They do not allow e-pharmacies to sell narcotic drugs, tranquilizers, and Schedule X drugs, and neither are they allowed to advertise.