CDSCO Criminal Prosecution Against IndiaMART Put on Hold by Delhi HC Till Sept 17
New Delhi: The Delhi High Court has directed the Central Drugs Standard Control Organisation (CDSCO) not to enforce its order initiating criminal prosecution against IndiaMART Intermesh Limited over alleged listings of illegal drugs on its online platform.
Justice Saurabh Banerjee, while posting the matter before the roster bench for hearing next week, ordered that CDSCO’s directive of September 1, 2025, “shall remain in abeyance until September 17, 2025.”
According to a recent media report in the Bar and Bench, appearing for IndiaMART, Senior Advocate Darpan Wadhwa, assisted by Advocate Anirudh Bakru and a team from Bahuguna Law Associates, argued that the provisions invoked—Sections 18 and 27 of the Drugs and Cosmetics Act, 1940 — govern manufacturers, sellers, and distributors of medicines and cannot be applied to an online marketplace.
IndiaMART further maintained that it functions solely as an intermediary under the Information Technology Act, does not participate in transactions between buyers and sellers, and is protected by the safe harbour provisions of Section 79 of the IT Act.
The company likened its role to a digital directory or “yellow pages,” stating that it only hosts product listings created by third-party vendors, and has no involvement in the manufacturing or sale of drugs.
The CDSCO’s counsel, while reserving the regulator’s rights, informed the Court that the September 1 order would not be acted upon until the case is heard.
The dispute traces back to multiple notices and letters issued by CDSCO between June 2024 and July 2025 — dated June 13, 2024; December 24, 2024; May 9, 2024; May 1, 2025; July 8, 2025; July 9, 2025; and July 18, 2025 — warning IndiaMART of potential prosecution and directing it to take corrective action.
IndiaMART had first approached the High Court in June 2024, challenging these notices. On July 22, 2025, Justice Sachin Datta recorded the submissions of government counsel that the company’s responses were under consideration and that a reasoned order would be passed after granting a hearing. At that stage, the Court had protected the company and its directors from immediate coercive action, observing that apprehension of prosecution was unfounded.
Following the CDSCO’s recent decision to initiate prosecution, IndiaMART once again sought the Court’s intervention, reiterating its stand that it is only an intermediary platform and not a trader in pharmaceutical products.
The company reiterated that it functions solely as an intermediary, similar to a yellow pages directory. It contended that its role is limited to listing products, with no involvement in their manufacture or sale, reports Bar and Bench.
