Penalties under the Drugs Act, 1976 – How Companies Can Seek Relief in KP & Islamabad

The Drugs Act, 1976 forms the backbone of Pakistan’s drug regulation regime. It ensures that medicines manufactured, distributed, and sold in the country meet strict standards of quality, safety, and efficacy. To enforce compliance, the Act prescribes a wide range of penalties against companies and individuals for violations such as selling substandard drugs, operating without licenses, or breaching labeling requirements. However, businesses are not left without remedies. Pharmaceutical companies and distributors in Khyber Pakhtunkhwa (KP) and Islamabad can challenge these penalties before specialized forums and seek relief under the law.

Types of Penalties under the Drugs Act, 1976

The Act prescribes both criminal and regulatory penalties. These may include fines, imprisonment, cancellation of licenses, suspension of manufacturing or distribution operations, and confiscation of drugs. For instance, marketing spurious or adulterated drugs can lead to severe criminal liability, while minor non-compliance, such as packaging errors, may attract regulatory fines. Drug inspectors and licensing authorities are empowered to initiate inquiries, but their decisions are not always final, which opens avenues for companies to challenge them.

Forums for Seeking Relief

When companies are penalized under the Drugs Act, 1976, they can approach two primary forums:

First, Drug Courts established under the Act try cases involving violations and can impose criminal penalties. Orders passed by Drug Courts can be challenged before the High Court.

Second, regulatory orders such as suspension of licenses, imposition of fines, or refusal of registration by the Drug Regulatory Authority of Pakistan (DRAP) or provincial drug authorities can be appealed before the Drug Appellate Tribunal. In KP, the Tribunal has jurisdiction over cases arising from the provincial authority, while in Islamabad it handles matters falling under DRAP’s domain.

Procedure to Challenge Penalties

The first step for a company seeking relief is to obtain a certified copy of the impugned order, whether issued by a drug inspector, DRAP, or the provincial authority. The company then files an appeal before the competent Tribunal within the prescribed limitation period, usually thirty days. The appeal must outline the grounds of challenge, such as lack of jurisdiction, misapplication of law, violation of natural justice, or disproportionality of the penalty.

During hearings, both the appellant company and the regulatory authority present their arguments, supported by documents and evidence. The Tribunal can confirm, annul, or modify the penalty. In many cases, tribunals have reduced fines, reinstated suspended licenses, or remanded matters back to the authorities for reconsideration.