Defence Drug Scam: 23 Medical Distributors Licences Cancelled

Mumbai, 5 June 2019: The Food and Drugs Administration (FDA), Maharashtra, had recently cancelled licences of 23 medicine distributors across Mumbai, Thane and Raigad for siphoning medicines exclusively manufactured for defence and Central government hospitals. The accused involve major distributors who allegedly supply 30%-40% of medicine stock across pharmacies in Mumbai.

“The action is a part of the longstanding investigation to find parties involved in the blackmarketing of medicines and leaking the stock in open markets. Apart from the 23 existing parties, many more are also involved who’s license cancellation will depend on whether they are able to respond to our show-cause notices within the stipulated time period,” said Amrut Nikhade, joint commissioner (drugs), FDA, Maharashtra.

In the last week of January, the FDA had seized type-2 diabetes medicines worth more than ₹30lakh from warehouses of these distributors. Subsequently in February, first information reports (FIR) were filed against 13 retailers, distributors and an online pharmacy.

The distributors and online medicine traders would illegally remove the tag, ‘For defense use only, not for sale’ using a whitener. After the cancellation of licenses, many distributors have now approached the office of the Cabinet minister, FDA, with an appeal to reinstate their licenses. Abhay Pandey, president, All Food and Drugs License Holders Association (AFDLHA), said the newly-appointed minister will have the authority to reinstate or cancel the licenses.

“We have written to the ministry, urging them to not reinstate the licenses of the accused because it will send the wrong message to the industry. If they are able to get back in the business, it will promote such practices,” said Pandey.Hindustan Times