The Karnataka government has now issued a conditional order to VLN Nirman Pharma to get back its trade license to continue pharmacy trade from an outlet and not via online. The company’s license was cancelled when it was found to be engaged in online pharmacy business along with its pharmacy outlet business.

Following the cancellation of license by the Karnataka drugs control department, VLN Nirman Pharma had appealed before the Appellate Authority and principal secretary, Karnataka health and family welfare department.

The appeal was filed under Section 66 (2) of the Drugs & Cosmetics Rules. In so far as the online sale of prescription drugs under Schedule H is concerned, the appellant VLN Nirman Pharma had provided the list of medicines and prescriptions to the respondent Karnataka health and family welfare department.

However, the respondent said that it would be necessary for the VLN Pharma to have a license under the Drugs and Cosmetics Act to ensure that the provisions under Section 65 (9) of the Rules are complied with to continue his chemist outlet business.

The appellant VLN Nirman Pharma in its defense admitted that provisions of (b) of Rule 66 of the Drugs & Cosmetics Act was not followed, while undertaking that he would not sell drugs and cosmetics online in future. He further mentioned that there was no mention in the Drugs and Cosmetics Act or Rules or in the conditions appended to the license prohibiting online sales of medicines. It was also a fact that the appellant or his agent or employee had not been guilty of any similar act or omission during the previous 12-month.

The respondent said that since VLN Nirman Pharma was giving an undertaking that he would not indulge in online sale of drugs to the Karnataka drugs controller, it was inclined to cancel the order passed by the drugs control department.

Further the state health department noted that the regulatory authority was also required to ensure that at all times the conditions of licensing are scrupulously followed.

Supply of medicines online which is based on scanned copy of  prescriptions cannot be accepted because this is a gross violation of the Drugs and Cosmetics Act & Rules. The government is yet to work on a set of online pharmacy trade norms, Raghurama Bhandary, drugs controller, government of Karnataka told Pharmabiz.

The state government has now given VLN Nirman Pharma an opportunity with the condition that the company would never indulge in online sales of drugs. Now he is permitted to continue his distribution of pharmaceutical products only through an outlet, he added.

Dr G N Singh, Drugs Controller General Of India had also stated, “Online pharmacy trade was not approved legally and hence unacceptable. There were currently provisions and safeguards under the Indian Penal Code and D&C Act to deal with this malpractice. The Centre had plans to see how other international regulatory bodies were tackling the challenges of online pharmacy.”

Karnataka is also the first state in the country to seize the online pharmacy business of an international vendor which was forced to wind up this operations and leave the country way back in 2011, said Bhandary.