The Delhi High Court has temporarily restrained the Central Drugs Standard Control Organisation (CDSCO) from pursuing criminal proceedings against IndiaMart, following allegations that the online marketplace listed unapproved medicines for sale. The matter will now return for hearing on September 17.
Justice Saurabh Banerjee observed that since the case had been heard earlier by another bench, it should be referred back to the same court. “Till then, no action should be taken,” he directed, according to people aware of the proceedings.
The case stems from complaints that IndiaMart hosted listings for drugs such as Crysvita, Oxbryta and Jynneos, which have not been cleared for sale in India. Japanese drugmaker Kyowa Kirin raised concerns about Crysvita, used in rare bone disorders, while the Intelligence Bureau flagged listings of Pfizer’s Oxbryta, a sickle cell disease treatment, and Bavarian Nordic’s Mpox vaccine Jynneos.
IndiaMart argued that it functions only as an intermediary connecting buyers and sellers, and therefore cannot be held liable under the Drugs and Cosmetics Act. Its lawyers cited Section 79 of the Information Technology Act, 2000, which provides “safe harbour” protection to intermediaries provided they act with due diligence and comply with government directives.
Regulators, however, contend that IndiaMart’s processes fall short of due diligence standards. Officials point out that sellers on the platform are not required to mandatorily submit GST or PAN details, making it possible for unverified parties to list products. Despite IndiaMart removing flagged listings, new entries for unapproved medicines reportedly resurface.
The CDSCO, which has intensified crackdowns on spurious drugs in recent years, initiated criminal proceedings after what it described as unsatisfactory responses to its notices. The High Court’s interim relief gives IndiaMart breathing space, but the broader debate on intermediary liability in India’s e-commerce sector is far from settled.
