The South Chemist and Druggist Association (SDCA), a Delhi-based body of pharmaceutical distributors, has sent a legal notice to e-pharma start-up Pharmallama, which received investment on the popular show Shark Tank India. The association has also sent a legal notice to Sony Pictures, and all the five investors, who invested in the company, alleging a violation of the provisions of law regulating the pharma industry.
SCDA is a registered association of distributors and retailers of drugs and prescription medicines whose members operate in South Delhi. The pharma distributors body has opposed the investments made in the start-up on the popular show and claimed that the involved parties are in violation of the Drugs and Cosmetics Act, 1940, and the Drug Rules 1945.
ALSO READ |
The SCDA has claimed that running an e-pharmacy is against Indian laws and there is ‘no rule’ in the country that allows the repackaging of medicines.
Earlier, the association had sent a letter addressed to the founders of the start-up and the Health Ministry, in which it alleged that Pharmallama’s operations are illegal and should be immediately shut down in the public interest.
Founded in 2020, Pharmallama is the online platform of Mera Dawai Pvt. Ltd. Pharmallama is a ‘full-servicing pharmacy and comprehensive medication management platform’ which provides medication to users in pre-sorted sachets.
These sachets are printed with the dosage and timing of the medication to simplify the timing of taking the medicines.
The start-up bagged an investment of Rs 2 crore for 5 percent equity from all five sharks of the show— Anupam Mittal, Aman Gupta, Namita Thapar, Peyush Bansal and Amit Jain.
In the legal notice, SDCA has claimed that Pharmallama is in gross violation of the Drugs & Cosmetics Act, 1940 (D&C Act) and the Drugs Rules, 1945 (D&C Rules) and the network including all five sharks are liable to face legal action.
The notice states that the drugs and medicines supplied through Pharmallama without their original packaging are considered 'misbranded', 'adulterated' or 'spurious' or 'adulterated' drugs as defined under the DC Act.
Thus, the manufacturing, sale or distribution of the alleged adulterated drugs is punishable and if such drugs harm a person, then the company shall be punished with imprisonment for a term of over ten years and will be liable to a fine of over Rs 10 lakh or three times the value of the drugs confiscated.
SDCA also alleged that Pharmallama does not have any licence, which is mandated as per law for dispensing medicines by way of retail sale.
Thus, by removing medicines from their original packaging, Pharmallama removes the information that is mandatorily required to be disclosed to patients.
This poses a substantial risk to the lives of the patients as the same can result in contamination of the medicines, which can reduce the strength of the medicine and may render it injurious to health.
The SDCA alleged that Pharmallama is engaged in dispensing medicines without complying with the rules and it has also heavily advertised and promoted itself on various platforms, including on the reality show, Shark Tank India.
The legal notice stated that if found guilty, Pharmallama and all directors and shareholders including the sharks as well as Sony Pictures Networks India are liable for prosecution.
(Edited by : Sudarsanan Mani)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Supreme Court refuses plea seeking 6-year poll ban on PM
May 14, 2024 7:14 PM
Punjab Lok Sabha elections 2024: A look at BJP candidates
May 14, 2024 7:06 PM
Lok Sabha polls: EC disposes of 90% complaints related to MCC violations
May 14, 2024 4:45 PM
Jharkhand Lok Sabha elections 2024: All about INDIA bloc candidates
May 14, 2024 2:52 PM