Clouds of uncertainty further thickened over the new-generation online pharmacy retail model after the Delhi High Court banned sale of medicines through e-pharmacies.

Terming the order unfortunate and against the new-age technologies, online pharmacy players believe a blanket ban on e-retailing of medicines would only suffocate the emerging sector.

It has been less than two years for most e-pharmacy players, including popular ones such as PharmEasy, 1MG or NetMed to have raised large chunk of funds. An abrupt and blanket ban on the e-pharmacies is seen jeopardising the investments in this sector.

“It is not to challenge the order, but ideally it shouldn’t have been a blanket ban, rather it should have been through merit. Not everyone has got a flawed model. Just as regulators take action on merit basis for brick-and-mortar retailers, they should check the online models, inspect the transactions and check who is compliant and then take a call. This decision is not good,” said Hemant Kumar Bhardwaj, MD & CEO and Co-founder of Zigy.com — one of the first online pharmacy players in India.

When contacted, PharmEasy officials declined to comment without reading the court order.

In Gujarat, one of the prominent online retailing markets, e-pharmacies have still not found a legal standing.

‘A grey area’

Speaking to BusinessLine , HG Koshia, Commissioner, Food and Drug Control Administration (FDCA), Gujarat Government, confirmed that the State has not allowed any e-pharmacies to operate.

“Currently, this is a grey area. The Drug and Cosmetics Act is neither restricting e-pharmacies nor it is allowing them. Since, the Act is silent on them and the High Court has given a verdict, we will act accordingly. The licensing process in Gujarat is decentralised at the district level, but none of our officials has given any licence to online pharmacies,” said Koshia.

Experts noted that since there is no rule-book for the e-pharmacies and no mention of the same even in the Acts, there lies a great deal of uncertainty to operate or allow to operate an e-pharmacy.

But the voices are growing louder for the regulator to find a way out since the technological advancement in online retailing is penetrating remote areas with public sentiment supporting the ease of online purchases.

“Looking at the penetration of technology and sentiment of the people, e-pharmacies shouldn’t be restricted. The regulator can, with new rules, ensure safety of the patient and quality of the medicines,” said Koshia.

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