AIOCD Opposes RailTels’ Proposal To Invite Bids From Online Pharmacies

The chemist body, All India Organisation of Chemists and Druggists (AIOCD), has opposed the public sector undertaking RailTel Corporation of India Limited’s (RailTel) proposal to invite bids from online pharmacies for home delivery of medicines. 

The home delivery of medicines will likely happen from hospitals under Indian Railway’s administrative control.

AIOCD has also written a letter to the union minister of railways Ashwini Vaishnaw saying that there has been some error of judgement by RailTel or they are unaware of the status of online pharmacies in India and hence such irresponsible decision may have been taken.

AIOCD has alleged that online pharmacies are illegal in India and that RailTel Corporation’s proposal is tantamount to circumventing country’s laws and putting public health at great risk.

AIOCD in its statement cited a ruling from the Delhi High Court on December 12, 2018, which prohibited online pharmacies under specific writ petitions, asserting that no legal framework currently exists for such operations under the Drugs and Cosmetics Act, 1940 or its rules. 

The AIOCD emphasised that according to the Drugs and Cosmetics Act, the distribution of medicines can only occur within licensed premises. Although the government allowed door delivery during the COVID-19 pandemic under exceptional circumstances, this was limited to local and registered pharmacies, not online platforms. 

The organisation has called for the repeal of this notification, underlining that any operation outside these parameters poses significant risks to public health. 

Under Section 65 of the Drugs and Cosmetics Act, prescriptions must include specific details such as the prescriber’s signature and seller’s information. These requirements may not be fulfilled in online pharmacy.

The Indian government proposed the Drugs and Cosmetics (Amendment) Rules, 2018, which include provisions for epharmacies. These draft rules require epharmacies to obtain registration and comply with specific operational guidelines. However, these rules have yet to be finalised or notified.

It is pertinent to note that the legal status of online pharmacies including Tata 1mg, Practo, PharmEasy and NetMeds is currently ambiguous in India led by existing regulatory gaps.

However, there have been HC verdicts backing online pharmacies too. For instance, in June last year, the Madras High Court reportedly set aside an earlier order by a single judge bench asking them to stop engaging in the digital trade of medicines.

The argument given by some of the online pharmacies is that they operate as aggregators connecting consumers with licensed pharmacies, thus claiming exemption from licensing requirements. While court rulings have highlighted the need for clear regulations governing online pharmacies.