Maharashtra Govt Seeks Rs 26.5 Crore for Statewide Drug Track-and-Trace System Amid Spurious Medicine Crackdown

Mumbai: Amid rising cases of counterfeit and spurious medicines, the Maharashtra government’s Maharashtra Food and Drug Administration (FDA) has proposed a state-wide digital "Track and Trace" system and sought Rs 26.50 crore from the Union government to initiate the project.

The proposal has been submitted to the Ministry of Health and Family Welfare, following multiple large seizures of fake medicines across cities such as Pune, Thane, Palghar, Nagpur, and Latur. The move also comes in the wake of a tragic incident in Chhindwara, Madhya Pradesh, where contaminated medicines reportedly led to the deaths of at least 25 children in October last year.

The proposed digital platform aims to enable end-to-end monitoring of medicines from manufacturers and distributors to retailers and hospitals using QR codes. The system is expected to provide batch-level tracking, real-time dashboards, mobile applications for field inspectors and automated alerts to flag suspicious transactions, illegal diversions and recall situations. It will also monitor inter-state movement of drugs to prevent unauthorised circulation.

While the total project cost is estimated at nearly Rs 100 crore, the FDA has requested Rs 26.50 crore as initial funding to begin development. The state government has indicated that it will bear the annual maintenance costs and eventually integrate the system with the central drug regulatory framework upon approval.

The proposal follows intensified enforcement actions by the FDA in recent years. Authorities have uncovered several cases of unlicensed manufacturing and false labelling, including counterfeit versions of commonly used medicines such as Telma and ciprofloxacin, seized in Thane and Nagpur.

Following the Chhindwara incident, inspections were stepped up, particularly focusing on over-the-counter sales of cough syrups without prescriptions. Between April 1 and November 30, 2025, inspections of 750 retailers found 224 in violation of regulations, with 64 retailers facing licence cancellation. Among allopathic, Ayurvedic, and cosmetic manufacturers, 13 units now face suspension for breaching manufacturing norms.

During 2024-25, the FDA cancelled 271 retail licences and initiated cancellation proceedings against 15 manufacturers. In the previous year, 303 retail licences were revoked, and 21 manufacturers lost their licences.

As reported by Hindustan Times, FDA minister Narhari Zirwal expressed confidence that the proposal would receive approval, stating that the Track and Trace system would significantly curb the supply of spurious medicines, enhance transparency, improve recall efficiency, and plug gaps in the pharmaceutical supply chain.

Officials further noted that real-time digital monitoring would strengthen public health safeguards and prevent fake medicines from reaching patients. If approved, Maharashtra could emerge as one of the first states in India to implement a comprehensive digital drug surveillance system.