Can a drug licence be suspended before a hearing? Karnataka HC explains rule
The Karnataka High Court ruled that drug licensing authorities must provide an opportunity for a hearing before suspending a pharmaceutical distributor's license. The court allowed a distributor to continue operations while the authorities reconsider their show-cause notice.
Why it matters
This clarifies the legal due process required for regulatory actions against pharmaceutical businesses, protecting companies from arbitrary license suspensions.
NEW DELHI: Can a drug licensing authority suspend a pharmaceutical distributor’s licence while issuing a show-cause notice, before considering its response? The Karnataka high court has said the procedure under the Drugs and Cosmetics Rules requires an opportunity to respond before a suspension or cancellation order is passed.It allowed a pharmaceutical distributor to continue its business while the authorities reconsidered the matter, except for dealing with two specified injections.In an October 1, 2026, order, the court directed the authorities to treat the notice issued to Wellness Forever Chemists and Lifestyle Store as a show-cause notice, allow it to submit an additional reply and then pass appropriate orders in accordance with law.Why was the pharmaceutical distributor’s licence suspended?According to the judgment, Wellness Forever, an authorised distributor of pharmaceutical products, approached the high court after the licensing authority issued a show-cause notice-cum-suspension order on September 19, 2026.The allegation against the company was…
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