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AICDF launches major campaign against illegal drug marketers
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Peethaambaran Kunnathoor, Chennai
November 06 , 2025
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The All India Chemists and Distributors Federation (AICDF) has launched a campaign to root out ‘Black Sheep’ marketing houses operating illegally and promoting unregistered brands across the country.
Led by Pharma Gladiator president Narendra Jain, the Federation aims to coordinate closely with apex regulatory bodies, including the CDSCO (Central Drugs Standard Control Organisation), to detect and prosecute pharmaceutical companies engaged in massive regulatory non-compliance, which the body describes as denying the protocol.
The urgent necessity for this campaign stems from the alarming discovery that, according to the AICDF's analysis of CDSCO's monthly alerts, a staggering 85-90 per cent of companies flagged for sub-standard formulations are largely unknown to common traders. A primary violation involves the complete disregard for the mandates of the Drugs Prices Control Order (DPCO), with AICDF estimating that nearly 75 per cent of disputed brands are unregistered, unapproved, or unsanctioned by the NPPA (National Pharmaceutical Pricing Authority).
According to Narendra Jain, these companies primarily operate through sophisticated, concealed Franchisee models, offering wholesalers deep discounts, often ranging from 70 per cent to 85 per cent off the Maximum Retail Price (MRP). This predatory pricing structure is supported by two fatal conditions imposed by manufacturers, first, dealers must not return unsold or expired medicines, leading to unscientific disposal, significant bio-hazards, and environmental contamination.
The second condition is to conceal the name of the marketing licensee on the packaging. This deliberate opacity is intended to shield the true offenders when a substandard product is detected.
The AICDF argues that directors and owners of these companies, many of whom have backgrounds as experienced marketing professionals, are not misguided but have knowingly adopted this expedient, yet unlawful, route to bypass mandatory requirements like filing Form V for price and brand registration.
Further compounding the regulatory breach is the issue of complicity within the trade. The investigation highlights the reliance on SAI (Stock Availability Information), an unofficial and widely discredited ‘No Objection’ note required by certain regional traders' associations. The AICDF explicitly denounces SAI as an unlawful and unethical malpractice previously censured by the Competition Commission of India (CCI), suggesting its continuation points toward an unholy nexus with shared financial interests.
Despite the mounting evidence, the AICDF expressed concern over the lack of visible impact from the authorities' responses in recent weeks, noting that the brands of accused pharmaceutical houses continue to be reordered and supplied to dealers. This perceived slow pace is attributed, in part, to concerns about hobnobbing, as several accused directors are also active officials in regional associations, potentially influencing and slowing down crucial investigation and prosecution efforts.
To emphasize the gravity of the violations, the Federation draws a stark parallel to the deadly public health hazard posed by non-compliant drugs, citing the tragic incident involving the toxic cough syrup Coldrif, manufactured by Sresan Pharmaceuticals, which claimed several lives. This, the AICDF warns, proves that failure to follow NPPA formalities is a serious risk that cannot be remedied merely by later compliance or penal fees.
AICDF's final demands are non-negotiable. They seek the swift and impartial prosecution of all offenders, including companies like Novomedix, XCEED Pharma, and Fast Cure Pharma. Most crucially, the Federation demands an immediate and permanent ban on all brand names found to be illegal or disputed due to non-compliance with the DPCO, asserting that compromise or rehabilitation of convicted entities would be a betrayal of the common people’s right to safe medicine.
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