Pharmaceutical & Cosmetics Law - India

Drugs and Cosmetics Act, 1940: Sections, Penalties, Rules and Current Amendments

The Drugs and Cosmetics Act, 1940 (Act No. 23 of 1940) regulates the import, manufacture, distribution and sale of drugs and cosmetics in India. The Act establishes quality standards, regulatory authorities, inspection and testing powers, restrictions on misbranded, adulterated and spurious products, offences, penalties and special procedural provisions.

Act No.23 of 1940
Enacted10 April 1940
Administered byMinistry of Health & Family Welfare
Current amendment position as on 4 September 2026: amendments made by the Jan Vishwas (Amendment of Provisions) Act, 2023 relating to the Drugs and Cosmetics Act came into force on 31 December 2024. These include changes to Section 29, Section 30(2) and the compounding scope under Section 32B. The Drugs and Cosmetics (Compounding of Offences) Rules, 2025 now provide the procedural framework for compounding specified offences. The Jan Vishwas (Amendment of Provisions) Act, 2026 has also been enacted; however, the Central Government has notified 30 June 2027 as the commencement date for the amendments corresponding to the Drugs and Cosmetics Act specified in that enactment, so those future amendments are not treated here as presently operative.

What the Act regulates

Import control

Chapter III regulates standards, prohibited imports, misbranded, adulterated and spurious drugs and cosmetics, offences, confiscation and jurisdiction.

Manufacture and sale

Chapter IV regulates manufacture, sale and distribution, licensing-related prohibitions, records, inspectors, Government Analysts, testing, offences and penalties.

Traditional medicines

Chapter IVA contains a dedicated framework for Ayurvedic, Siddha and Unani drugs, including standards, manufacture, prohibition, inspection and penalties.

Enforcement and courts

The Act provides for cognizance, compounding of specified offences, Special Courts, enhanced penalties, appeals, revision and confiscation.

Important current penalty and compounding changes

Following the Jan Vishwas (Amendment of Provisions) Act, 2023, Section 29 now provides for a monetary penalty that may extend to ₹1 lakh for prohibited use of a Government Analyst's report for advertising. Section 30(2), dealing with specified subsequent offences, was also rationalised by substituting the earlier imprisonment/fine formulation with a minimum fine of ₹5 lakh. Section 32B was expanded so that specified offences under Section 27(d) and Section 27A(ii), in addition to other listed offences, may be compounded in accordance with law.

The Drugs and Cosmetics (Compounding of Offences) Rules, 2025 prescribe the procedure for applications and compounding under Section 32B. Whether a particular contravention is compoundable depends on the exact statutory provision and the applicable rules.

Related subordinate legislation

The principal Act operates with detailed subordinate legislation. The Drugs Rules, 1945 continue to govern many drug-related licensing, import, manufacture, sale, labelling, testing and quality requirements. Cosmetics are governed separately through the Cosmetics Rules, 2020. Regulatory requirements are frequently updated through Gazette notifications, so the latest CDSCO notifications should be checked for compliance-sensitive matters.

Section-wise Drugs and Cosmetics Act, 1940

Use the chapter-wise links below to read individual provisions of the Act. Statutory section headings are retained for reference, including headings that continue to use older procedural-law terminology in the text of the principal Act.

Chapter I - Introductory

Chapter II - Drugs Technical Advisory Board, Central Drugs Laboratory and Drugs Consultative Committee

Chapter III - Import of Drugs and Cosmetics

Chapter IV - Manufacture, Sale and Distribution of Drugs and Cosmetics

Chapter IVA - Ayurvedic, Siddha and Unani Drugs

Chapter V - Miscellaneous

Legal and regulatory requirements for drugs, cosmetics, medical devices, new drugs, clinical trials and related products may also arise under separate rules, notifications and other legislation. For regulatory action, prosecution, licensing or compliance, always verify the current Gazette notification and the latest applicable rules.