Drug department issues strict directions to curb the sale of fake and counterfeit medicines
Companies, C&F agents, super distributors and stockists must bill in the name of the same doctor or institution where the medicine is to be supplied
Institutional supply must be clearly written on the packing and label of medicines meant for institutional supply
Schedule H, H1 and X drugs to be supplied only on a written and signed purchase order; a copy of the order must be kept safe for two years
Lucknow, September 2026 : To effectively curb the sale of fake, counterfeit and substandard medicines and to ensure the availability of quality medicines at fair prices for the general public, the food safety and drug administration department has issued important directions regarding the specially discounted institutional supply of medicines. The department has stressed ensuring transparency in billing at the level of companies, C&F agents, super distributors and stockists, as well as in the actual supply of medicines.
It has come to the department's notice that various drug manufacturing and marketing companies give special discounts to doctors and hospitals and nursing homes through their C&F agents, super distributors or stockists. In many cases, instead of billing the medicines in the name of the concerned doctor or hospital and nursing home, companies or C&F agents bill them in the name of their stockist. The stockist then supplies the medicines to some other drug seller or firm, instead of the doctor, hospital or nursing home specified in the bill.
Stop the diversion of specially discounted medicines
According to the order issued by Roshan Jacob, Commissioner of the Food Safety and Drug Administration department, selling medicines obtained at a special discount at a lower price than other wholesalers increases the concerned stockist's sales. This also adversely affects the principle of healthy competition in the market. An even more serious situation arises when, under the guise of special discounts or cheap medicines, fake bills are prepared and fake and counterfeit medicines are sold.
Noting that such activities came to light during the department's campaign against fake and substandard medicines, the department has described them as contrary to ethical trading and seriously harmful to public health.
The bill must be in the name of the institution where the medicine is to be delivered
Under the new directions, companies, C&F agents, super distributors and stockists must ensure that the billing of medicines is done in the name of the same doctor or institution to which the medicine is actually to be supplied.
They must also ensure that the provision for showing different premises as "Bill To" and "Shipped To" on the sale bill is not misused. That is, the supply must be made at the same designated place as the doctor or institution in whose name the bill has been made.
Institutional supply must be written on the packing of institutional supplies
To prevent the diversion and misuse of medicines supplied institutionally at a special discount, it will be mandatory for the manufacturing firm or the CFA to clearly print "institutional supply" on their label and packing. This arrangement will make it easy to identify that the medicine is meant for institutional supply and cannot be diverted into the general market in an unauthorized manner.
Written purchase order mandatory for Schedule H, H1 and X drugs
In accordance with the provisions of the Drugs Rules, the directions have also been clarified regarding the supply of medicines sold on medical advice, namely Schedule H, H1 and X drugs. These drugs will be supplied to registered doctors, hospitals, dispensaries and nursing homes only on their written and signed purchase order. It will also be mandatory to keep a copy of the concerned purchase order safe for at least two years.
Legal action for unauthorized supply
The department has made it clear that if any firm is found to be making unauthorized supply of medicines, cognizance will be taken for action under the Drugs and Cosmetics Act, 1940 and the rules related to it.
Emphasis on availability of quality medicines at fair prices in the public interest
The department has said that medicine is an essential commodity, and that, reading the drugs (Prices Control) order (DPCO), 2013 together with the Essential Commodities Act, 1956, the availability of medicines must remain accessible to the general public. With this objective, arrangements have been made to ensure transparency in the sale of specially discounted medicines, correct identification of supplies, and prevention of unauthorized diversion. The department has directed all concerned companies, C&F agents, super distributors, stockists and drug sellers to ensure strict compliance with these directions.
