New Guidelines Ease Judicial Burden for Pharma Firms

Amended guidelines now allow pharmaceutical firms to avoid court appearances for minor offences by paying a monetary penalty and making self-corrective actions, under the Drugs and Cosmetics (Compounding of Offences) Rules, 2025. This change, part of the Jan Vishwas Act, aims to ease business processes.

Pharmaceutical firms could soon bypass the legal system for minor infractions, choosing instead to pay fines and make corrective changes, under new guidelines. These adjustments emerge from the 2025 amendments in the Drugs and Cosmetics (Compounding of Offences) Rules.

Part of the Jan Vishwas Act, the changes are poised to decriminalize minor offences across numerous laws, including the 1940 Drugs and Cosmetics Act. This represents a shift towards facilitating business operations and reducing judicial load.

The Central Drugs Standard Control Organisation, within the Union health ministry, framed these guidelines. The updated rules allow designated authorities the discretion to assign fines and exempt companies from prosecution, provided conditions are met.

(With inputs from agencies.)