AIOCD Slams Unauthorized E‑Pharmacies as State Authorities Drag Their Feet

The All‑India Organisation of Chemists & Druggists (AIOCD) has issued a stern warning and demanded immediate action against illegal online pharmacies, condemning the complacency of State Licensing Authorities (SLAs), despite repeated complaints forwarded by the Central Drugs Standard Control Organisation (CDSCO).

Representing over 12.40 lakh chemists across India, the AIOCD asserts that several e‑pharmacy platforms operate without valid licenses under the Drugs & Cosmetics Act, 1940, flagrantly ignoring existing legal safeguards and jeopardising public health.

SLA Inaction Raises Alarms

— On July 22, 2025, the Health Ministry replied in the Rajya Sabha that unauthorised online medicine sale complaints are being referred to SLAs—but according to AIOCD, “no visible or effective action” has been recorded anywhere.
— A high‑level AIOCD delegation met with DCGI Dr. Rajeev Raghuvanshi on July 21. They demanded a crackdown on illegal e‑pharmacies, including dark‑store based quick commerce firms.

Among their top priorities: repeal of GSR 220(E) and the draft GSR 817(E) from 2018. The former was introduced during the COVID‑19 emergency and is now allegedly being misused; the latter has lingered in draft form for over eight years, creating a regulatory vacuum that allows digital platforms to evade scrutiny.

Why This Matters—Risk to Public Health

The AIOCD emphasises that medicine isn’t a consumer product like any other: it demands script verification, authentic chain‑of‑custody, and licensed dispensing. Online platforms, particularly those promising ultra‑fast deliveries, may bypass critical safeguards like prescription authentication and quality control, increasing the risk of distribution of counterfeit, expired, or improperly stored drugs.

Critics have also pointed out that invisible predatory pricing—discounts of 30–35% below standard trade margins—distorts market economics, jeopardising livelihoods of retail pharmacists and potentially eroding oversight by driving costs down unsustainably. This has broader implications for antimicrobial resistance (AMR) and overall regulatory integrity.

What Have Regulators Done?

— In 2018, the Delhi High Court issued an injunction prohibiting online pharmacies from selling medicines without proper licences. The union government was directed to draft a regulation, yet this remains pending nearly seven years later.
— In February 2023, the DCGI issued show‑cause notices to over 20 major e‑pharmacy players—including Tata 1mg, PharmEasy, Amazon, Netmeds—alleging sale of Schedule H, H1 and X drugs without valid licences.
— Despite expert criticism describing this regulatory delay as an abdication of duty, no comprehensive legal framework has been finalised. Firms continue to operate under ambiguous guidelines, and protests by pharmacy associations remain unaddressed.

AIOCD’s Recommended Measures

1. Immediate repeal of GSR 220(E) and GSR 817(E) to restore clarity on digital drug distribution.
2. Centralised enforcement by CDSCO on all illegal online pharmacy operations.
3. Compulsory action by State Licensing Authorities, in line with directives issued by central health agencies.
4. Collaboration between AIOCD, regulators and law‑makers to propose amendments to the Drugs & Cosmetics Act and Rules. The chemists’ body has volunteered to draft suitable changes to strengthen oversight and plug loopholes.

Broader Impacts and Stakeholder Views

While some e‑pharmacy operators claim legal compliance, and present rapid delivery models such as Instamart–PharmEasy, others remain skeptical. In delivery models promising 10‑minute turnaround times, AIOCD flagged concerns around bypassed prescription checks, anonymised orders, and compromised patient safety.

Industry experts and economists also warn that unchecked discounting by large corporate e‑pharmacies poses a long‑term threat to competition and fair pricing, shrinking margins for traditional pharmacists and potentially promoting unsafe practices.

Positioning within the Market

It’s worth noting that while AIOCD raises alarms, the need for trusted, licensed pharma suppliers remains critical. Companies with WHO GMP Certified PCD Pharma Companies background, with adherences to global quality standards, present a legitimate alternative—focussed on compliance, transparency, and regulated distribution—rather than unlicensed or unaccountable online platforms. This keyword fits into a broader narrative of safe pharma supply in India’s evolving health‑tech environment.

Final Thoughts

The AIOCD’s July 2025 appeal shines a spotlight on a deeper crisis: the indefinite delay in regulating e‑pharmacies, and the failure of state authorities to enforce existing legal standards. As the battle lines are drawn between traditional chemists and digital platformss backed by global investors, the need for swift legislative clarity has never been greater.

For India’s public health infrastructure to preserve trust, protect consumers, and support equitable access to medicines, regulators must heed the AIOCD’s demand—act decisively, enforce uniformly, and ensure that no medicine is sold without accountability.