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Policy · Commerce & Consumer Brands

Supreme Court seeks Snapdeal reply in drug sale case

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Date
Company
Snapdeal
What it does
Ecommerce marketplace for general goods
Kind
Policy
Sector
Commerce & Consumer Brands

What they do

Snapdeal is an online marketplace that connects buyers and third-party sellers

What happened

The Supreme Court has asked Snapdeal to respond to a Karnataka government appeal over sale of a prescription drug without a licence

Why it matters

The case tests whether ecommerce platforms can claim safe harbour under IT law when sector-specific health rules are violated

The details

  • The Supreme Court has sought a reply from Snapdeal in a case involving the sale of a prescription drug on its marketplace.
  • The Karnataka government is challenging a Karnataka High Court order that quashed criminal proceedings against Snapdeal and its directors.
  • The case concerns the sale of Suhagra-100, a Schedule H prescription drug, by a third-party seller M/s Herbal Healthcare.
  • The seller did not have a valid drug licence and supplied the medicine without requiring a doctor's prescription.
  • This violated the Drugs and Cosmetics Rules, 1945.
  • A drugs inspector filed a criminal complaint in 2019 before a Belagavi judicial magistrate under the Drugs and Cosmetics Act, 1940.
  • The magistrate summoned Snapdeal, directors Kunal Bahl and Rohit Kumar Bansal, and other accused.
  • The Karnataka High Court quashed the case in February 2022, ruling that Snapdeal as an intermediary was entitled to safe harbour under Section 79 of the IT Act, 2000.

The bigger picture

  • The Karnataka government argues that safe harbour cannot protect platforms from public health laws.
  • It claims Snapdeal failed due diligence under Section 79(2)(c) by permitting the sale of a prescription drug.
  • The case could determine the extent of intermediary protection for ecommerce marketplaces under sector-specific regulations.
  • The matter is listed for hearing on August 10, along with a similar case.

About the business

  • Snapdeal is an ecommerce marketplace that connects buyers and third-party sellers.

Founders

  • Kunal Bahl, director
  • Rohit Kumar Bansal, director

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