India: ‘Magical cure’ medicines worth approx. Rs 5.5 lakhs seized by FDA-Corporate Newsletter

July 31, 2018
ISSUE No. 31
August 31, 2018

India: ‘Magical cure’ medicines worth approx. Rs 5.5 lakhs seized by FDA


Source: www.fda.maharashtra.gov.in


The Maharashtra wing of the Food and Drugs Administration (hereinafter referred to as ‘FDA’) had been recently reported[1] to have proposed to the State Government to bring Ayurveda medicine sales under the purview of FDA. Further, the Maharashtra FDA was reported[2] to have a case registered against the manufacturers and distributors of an Ayurvedic tablet which claimed to be helping them increase their height. The case had been registered on the allegations of cheating the customers by making false claims about the medicines.


As per the reports[3] , the Maharashtra wing of Food and Drugs Administration (hereinafter referred to as ‘FDA’) has seized different kinds of magical cure medicines from Thane worth approx. 5.5 lakhs which claims to cure various problems and chronic diseases such as diabetes, cancer, blood problems, erectile dysfunction, low sperm count, blood pressure problems, etc.

Apart from seizing the stock, the FDA has also booked the concerned manufacturers and stockists under the Drugs and Magical Remedies Act, 1954 (hereinafter referred to as the ‘DMR Act’), the FDA also warned the citizens against the authenticity of such drugs.

Nature of offence:

The DMR Act states that an offence punishable under it shall be cognizable in nature and further mentions that no legal proceeding shall lie against any person for anything which is in good faith done or intended to be done under the Act.

Advertisement of misleading nature:

The DMR Act specifically provides that no person should take any part in the publication of any advertisement relating to a drug if the advertisement contains any matters which:

  • directly or indirectly gives a false impression regarding the true character of the drug; or
  • makes a false claim for the drug; or
  • is otherwise false or misleading in any material particular.

Penalty for offence:

The DMR Act provides the penalty for contravention of the provisions of the act as follows:

  • First conviction: imprisonment which may extend to six months or fine or both;
  • Subsequent conviction: imprisonment which may extend to one year or fine or both.







India: Nominee holds the Property for the legal heir



A pertinent question with respect to the laws of transfer of property in case of inheritance/ succession in India has been that, the person designated as nominee or the legal heir of the demised individual takes possession and becomes owner of the property.

What does nomination mean?

Nomination is the method by which a person (hereinafter referred as the “nominator”) during his/ her lifetime designates another person (hereinafter referred as the “nominee”) to be the legal nominee after the death of the nominator.

Nominee v. Legal heir

The legal position in this regard is that upon demise of the nominator, it is the nominee who shall take possession of the property of the deceased nominator. The nominee performs the function of receiving and holding the property of the deceased nominator until the time such property is required to be disposed by the nominee in accordance with the laws of transfer of property in case of inheritance/ succession to the legal heir of the deceased nominator. However, as per the laws of succession, it is the legal heir who shall be the rightful owner of the property and will ultimately inherit the property of the deceased nominator either through intestate or testamentary succession.

Nomination of shares

Another pertinent question which arises in this regard is that whether the same rules apply when the property to be inherited is share(s) of a company. As per Section 72 of the Companies Act, 2013, a holder of securities of a company may, at any time, nominate any person as his nominee in whom the securities shall vest in the event of his death.

Further, in 2016, in the case of Shakti Yezdani and anr. v. Jayanand Jayant Salgonkar , the Bombay High Court has held that “the nomination does not override the law in relation to testamentary or intestate succession. The provisions regarding nomination are made with a view to ensure that the estate or the rights of the deceased subject matter of the nomination are protected till the legal representatives of the deceased take appropriate steps.


From the above discussion, we can conclude that the method of nomination does not create any interest of the nominee in the property of the nominator. The nominee merely holds the property of the deceased nominator until the time rights of the legal heir(s) are established and the nominee is required to transfer such property to the legal heir(s).

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