Delhi HC restrains CDSCO from criminal action against IndiaMART in unapproved drugs case
During the September 9 hearing, lawyers representing IndiaMART argued that the platform functions solely as an intermediary between buyers and sellers, and therefore should be protected under the safe harbour provisions of Section 79 of the Information Technology Act, 2000.
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On September 9, the Delhi High Court restrained the Central Drugs Standard Control Organisation (CDSCO) from initiating criminal proceedings against IndiaMART, following allegations that the online marketplace was involved in the sale of unapproved medicines. The next hearing in the matter is scheduled for September 17, according to an ET Retail report.
IndiaMART had earlier challenged government notices issued in June 2024, and in July, the Delhi High Court had stated that a decision would be made after the company was given an opportunity to present its case.
During the September 9 hearing, lawyers representing IndiaMART argued that the platform functions solely as an intermediary between buyers and sellers, and therefore should be protected under the safe harbour provisions of Section 79 of the Information Technology Act, 2000.
Section 79 offers legal immunity to intermediaries, such as social media platforms and e-commerce sites, from liability for content posted by third parties, provided they exercise due diligence and comply with government directives when unlawful content is identified.
IndiaMART’s counsel further contended that the provisions of the Drugs and Cosmetics Act—which restrict the sale of controlled substances such as psychotropic drugs and narcotics—do not apply to the company, as it does not engage in direct sales.
The controversy escalated after Japanese pharmaceutical company Kyowa Kirin alleged that Crysvita, an injection used to treat X-linked hypophosphatemia and tumour-induced osteomalacia, was listed on IndiaMART despite not being approved in India.
Additionally, the Intelligence Bureau filed a complaint regarding the listing of other unapproved or allegedly counterfeit drugs, including Pfizer’s Oxbryta (voxelotor) for sickle cell disease, and Bavarian Nordic’s Jynneos vaccine for Mpox, which are also not approved for sale in India.
Following complaints from the CDSCO, IndiaMART removed the product listings in question. However, the report notes that due to the lack of a robust verification process, such listings often resurface, allowing unapproved products to reappear on the platform.
