The Drug Control act laid down the rules and guidelines for the control of the sale, supply and distribution of drugs. Improper sale, supply and distribution of drugs lead to price hike and hoarding for essential drugs by the dealers and producers. Hence, the government had to intervene to ensure the availability of essential and lifesaving and prophylactic medicinal drugs of good quality at reasonable prices. It promoted the rational use of drugs in the country to enhance cost-effective production with economic sizes. It empowered the government to regulate the maximum price and quantity of drugs which may be held or sold by a person.

Interpretation of Drug in this section is like drugs in section 3 clause (b) of Drugs and Cosmetic Act, 1940. This act applies to any drug which may be so declared by the Chief Commissioner, Central Government through order published in its official gazette.

This act lays down the restrictions to fix the maximum price or rate which may be charged; a maximum quantity which at any time be possessed and the maximum quantity which may be sold to a person in one transaction.

No person shall have in his possession greater than the reasonable quantity necessary of any drug to which this section applies. However, this section does not apply to the producer or dealer in respect of any drug sold or produced by him.

It is the duty of any person having more than permitted quantity of drug in his possession to report the same to the Chief Commissioner or any equivalent officer who shall take action against the storage, distribution and disposal of the excess quantity as directed by the Chief Commissioner.

Without sufficient cause or unless previously authorized to do so by the Chief Commissioner, no dealer or producer can refuse to sell drugs within permissible limits provided by this act.

Cash memorandum with the particulars as prescribed by the Chief Commissioner in the official gazette to be given for selling of any drug for Rs.5 or more and in case of less than Rs.5 if so, requested by the purchaser.

The Chief Commissioner may direct all or any particular dealer or producer to mark the price of any drug-exposed or intended to be sold with the sale price and to exhibit a price list of drugs held for sale along with the quantity in possession. Also, the dealer may not destroy, efface or alter any label or mark affixed to a drug by the producer.

In respect of composite transactions of the sale of drug and some other matter the dealer or producer making that offer shall state the assigned price of that drug in writing.

Chief Commissioner may if necessary or reasonable to do so in his opinion order in writing prohibition of disposal or direct sale of any drug to another dealers or class of dealers in such quantities and make such further orders in connection with any order issued under this act.

Failure to comply with the directions of the act or contravention with the provision of this act shall be punishable with imprisonment for a term which may extend to three years or with fine or with both. The court may order the whole or any part of the stock of drugs to be forfeited to the government. If a person is acting in the course of his employment as a servant or agent or on the instructions of any other person, he might claim defence against the charge.  

For offences by corporations, every person associated with management shall be guilty unless proven that offence was committed without his knowledge or he took due care to prevent it.

Investigation of an offence under this act shall be conducted by an officer of or above the rank of inspector of police and not below it as authorized by the central government. The prosecution shall be instituted only with the previous sanction of the district magistrate.

Any person competent to investigate has the power to search and seize any stock of drugs if he has reason to believe that an offence under this act has been committed.

Central Government may make rules for dealers and producers to maintain records of all sale and purchase transactions made by them; furnishing of any such information and the inspection of any books of account or any other document as required concerning the business carried.

No prosecution or legal proceedings against anyone acting or intending to act in good faith.

This act shall also be and not in derogation of any other law regulating other matters.

Section 20 stated about the Government analyst, which was later repealed through Ordinance 26 of 1949.[Rep. By the Repealing and Amending Act, 1957 (36 of 1957), sec. 2 and Sch. I.]

The Drugs (Prices Control) Amendment Order, 2019, by the Ministry of Chemicals and Fertilizers exempts "a manufacturer producing a new drug patented under the Indian Patent Act, 1970 (39 of 1970), for five years from the date of commencement of its commercial marketing by the manufacturer in the country," the notification said.

Drugs control act,1950; Drugs and Cosmetic Control Act, 1940; National Drug Control Act, 2013; Drug Price Control Order, 2019; Pharmacy Act License for Possession and Use of Rectified/Denatured Spirit; The Narcotic Drugs and Psychotropic Substances Act; Retail Drug License; VAT Act; Central sales Tax Act; The Sale of Goods Act; Adulteration of Drugs (IPC Sec 274); sales of drugs as different drugs or preparation (IPC Sec 276); Negligent Conduct regarding Poisonous Substances (IPC Sec 284; Blood Bank Regulations under Drugs and Cosmetic ( 2nd Amendment ) Rules; The Homeopathy Central Council Act and various other laws are enacted to moderate the price, quantity and distribution of drugs. Drugs under this section are made essential commodities. For the procurement of essential goods, it is necessary to restrict and fix certain guidelines and to abide by them for the proper functioning of the society.