“This is not merely a matter of trade, but of patient safety,” said Jagannath S. Shinde, president of the All India Organisation of Chemists and Druggists (AIOCD), announcing a nationwide shutdown of over 12.4 lakh chemist shops on May 20 against online pharmacies. The shutdown targets platforms that AIOCD says accept AI-generated fake prescriptions to dispense antibiotics, opioids, and banned drugs, in a market that has operated without e-pharmacies rules for eight years.
AIOCD submitted a memorandum to Prime Minister Narendra Modi, saying the government has taken no concrete action on issues affecting the pharmaceutical trade despite repeated requests.
AI-generated prescriptions enabling sale of restricted drugs: In February, a Times of India investigation found that online pharmacy platforms accepted AI-generated prescriptions with fabricated hospital names and doctor details and dispensed psychotropic drugs, opioids, antibiotics, and some banned medicines. AIOCD cited the investigation in a February 2026 letter to the PMO and called on the government to declare AI-generated prescriptions invalid nationwide.
AIOCD flagged three patient safety gaps that online pharmacies create that physical chemists do not:
Physical chemists must verify prescriptions before dispensing medicines under Drug Rule 65 of the Drugs and Cosmetics Rules, 1945. Online pharmacies carry no equivalent legal obligation.
Eight years without e-pharmacy rules: The Ministry of Health and Family Welfare issued draft e-pharmacy licensing rules in August 2018, proposing a licensing framework for online pharmacies, but never finalised them. A MediaNama RTI filed in 2022 revealed the Ministry’s own response: finalisation “may not be possible to say any timelines at this stage.” The rules remain unnotified as of May 2026 and no statutory definition of “e-pharmacy” exists in Indian law.
A timeline of how e-pharmacy regulation has stalled:
AIOCD has demanded that the government withdraw two notifications it says created the problem. A temporary relaxation of prescription verification rules introduced during the 2020 Covid lockdown was never withdrawn, allowing online pharmacy platforms to continue operating with minimal checks. Platforms have also cited the 2018 draft e-pharmacy rules, which were never enacted into law, to justify running unlicensed operations.
Tata 1mg, PharmEasy, Apollo Pharmacy, Blinkit, Zepto, and Swiggy Instamart all operate without a uniform prescription verification standard, an e-pharmacy licence requirement, or a regulator with a clear enforcement mandate. The Delhi HC’s 2018 ban on online medicine sales without a licence technically remains in force, but platforms continue to operate.
Platforms discounting 3x above the legal cap: Government price controls under the Drug Prices Control Order (DPCO) fix the retail margin on price-controlled medicines at 16% for retailers and 8% for wholesalers. Online platforms offer consumers discounts of 20% to 50%, which AIOCD says they sustain by burning capital to capture market share. Rural and semi-urban chemists face the greatest risk of closure, as neighbourhood pharmacies in these areas often serve as the first and only accessible healthcare point. AIOCD estimates that the livelihoods of 50 million people are tied to the pharmacy retail trade.
Not all chemist bodies back the shutdown: The Bangalore District Chemists and Druggists Association warned in March 2026 that a nationwide shutdown would push more consumers toward online pharmacies and strengthen the very platforms AIOCD opposes. Others, including a rebuttal in Highland Post, argue the Drugs and Cosmetics Act, 1940 already applies equally to online and offline sales, and that counterfeit drugs and improper dispensing are longstanding problems in the offline sector as well.
Associations from Gujarat (35,000+ chemists), Maharashtra, Delhi, Uttar Pradesh, and Tripura have confirmed participation. Rajiv Singhal, General Secretary of AIOCD, confirmed that emergency and critical healthcare services will not be affected on May 20. “If the Government does not take any concrete decision on these demands by May 20, we will be compelled to launch an indefinite agitation,” Shinde and Singhal said.
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