Madras HC orders govt to frame policy on online pharmacies

The Madras High Court has directed the Union Government to frame a policy on online sale of medicines by online pharmacies. As reported by The Indian Express, this is the second such instance in which the Supreme Court has directed the Centre to regulate online pharmacies, along with the Delhi High Court, during a hearing held in November 2023, after directing it to prepare a draft policy on the same, asking it to submit it within eight weeks. However, the Union Health Ministry failed to do so even by March 2024, when the court gave them a final chance to frame such a policy within four months, failing which it would hear the matter on its merits. These court hearings come in the backdrop of a slew of cases involving online pharmacies, stemming from the Madras High Court’s December 2018 order banning online sale of medicines.

What did the Madras High Court observe in the last hearing in this case?

A division bench of the Madras High Court, comprising Justices SM Subramaniam and C Kumarappan, in a recent hearing also directed the Centre to expedite and finalise a policy on online sale of drugs and notify them, as per the Delhi High Court order of March 2024. The directive came while hearing appeals filed by M/S Practo Technologies Pvt. Ltd. and seven others.

The petitioners had challenged the Madras HC order of December 2018, in which the Tamil Nadu Chemists and Druggists Association (TNCDA) had filed a public interest litigation (PIL) in the court against the functioning of online pharmacies, arguing that the Indian Drugs and Cosmetics Act, 1940, came into force before the advent of computers and the internet, which meant there were no clear regulations regarding the sale of medicines through online pharmacies. The petitioners argued that this could lead to the sale of harmful, adulterated or contaminated medicines to consumers, prompting the court to say that online pharmacies are “obliged not to continue selling drugs and cosmetics online” until the Centre frames rules on the matter.

The court had also issued an interim order against online sale of medicines during that time, which was later stayed and finally set aside in June 2024 by its Division Bench, which allowed online sale of medicines and was seen as a relief for online pharmacies. The court in its latest directive said that while online sale of medicines will continue to be permitted, as per the previous ruling, it can only be done by licensed chemists or pharmacists. The Bench further added that in case of any violation, the competent authorities are required to take appropriate action against the offenders.

Previous Online Pharmacy Litigation

The Delhi High Court had ordered a ban on online sale of medicines by online pharmacies in December 2018 and directed the Delhi government to enforce the order in response to a PIL filed by local dermatologist Zaheer Ahmed. It had also issued notice to several such pharmacies. However, at the time, experts believed that the ban would apply only to companies operating without a retail license and questioned the effectiveness of the ban and called for a dialogue with online pharmaceutical companies.

In September 2018, the Union Health Ministry had released a draft policy to regulate online pharmacies by amending the Drugs and Cosmetics Act, which included provisions for compulsory licensing by the Central Licensing Authority, a body set up by the central government under the Drugs and Cosmetics Act. However, the policy failed to materialize even after the December 2018 ban and a hearing in the Delhi High Court in November 2023, prompting the ministry to seek more time from the High Court to frame the policy during the last hearing in the matter in March 2024.

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