The Supreme Court issued notices to Snapdeal and its directors following a Karnataka government appeal against a High Court order that quashed FIRs over illegal online sales of prescription drugs. The case stems from a 2021 raid in Bengaluru where authorities seized 12,000 strips of scheduled drugs from a Snapdeal seller, exposing gaps in platform liability under the Drugs and Cosmetics Act. Karnataka’s plea argues that ecommerce marketplaces cannot evade accountability by claiming intermediary status when facilitating sales of controlled substances.

This is the first major test of whether India’s ecommerce giants can be held liable for third party sellers flouting pharma laws. The current legal gray area lets platforms like Snapdeal, Amazon, and Flipkart offload compliance to sellers while pocketing 10 20 percent commissions on high margin Rx sales. A ruling against Snapdeal would force platforms to implement real time prescription verification and seller audits, raising costs but aligning India with global norms. The precedent could also embolden states like Maharashtra and Tamil Nadu, which have already flagged similar violations to the Centre.

Snapdeal and its investors lose if liable. Pharma startups like 1MG and Netmeds which already comply with Rx norms gain a competitive edge. Offline chemists win as ecommerce’s cost advantage erodes. Consumers may face higher prices but gain safety. Karnataka’s enforcement agencies gain leverage over Big Tech.

Watch for Snapdeal’s legal defense hinging on Section 79 of the IT Act which grants intermediary immunity. If the Court rejects this, expect a scramble to lobby for amendments. Also watch Maharashtra and Delhi which are sitting on similar cases to follow Karnataka’s lead.