How to spot a fake drug licence

Last reviewed: 7 October 2026 · Pharma Mithra

Why a licence copy proves very little

A drug licence is granted by the State Licensing Authority to a particular firm, for particular premises, under particular forms of the Drugs and Cosmetics Rules, 1945. The certificate records what was true on the day it was issued. It cannot tell you whether the licence has since been suspended or cancelled, whether the firm has changed hands, or whether the image in front of you has been edited.

The licence conditions require the original to be displayed in a prominent place in the part of the premises open to the public. A genuine licensee therefore has nothing to hide: the original is on its wall, and the licence number should already be printed on its invoices.

Red flags on the licence copy

The firm name does not match

Compare the name on the licence with the name on the supplier's invoice, its GST registration (legal name and trade name) and the bank account you are asked to pay. Small spelling differences happen; a different business name does not. A licence belongs to the firm it was granted to, and another firm cannot use it, even a related one or one run by the same family.

The address does not match

The Rules require a separate licence for each place where drugs are sold or stocked for sale. If goods are billed or dispatched from an address that is not on any licence the supplier has shown you, either there is another licence you have not seen or that place is unlicensed. Ask which one it is.

The form is wrong for the business

• A distributor offering wholesale supply on a licence that shows only Forms 20 and 21. Those are retail licences.
• Vaccines, insulin and other Schedule C or C(1) products offered by a firm that shows only Form 20B. Those products need the "21" series licence (Form 21B for wholesale).
• Schedule X drugs offered without a Form 20G (wholesale) or Form 20F (retail) licence.
• A restricted licence (Form 20A or 21A) used to supply a full range. A restricted licence is valid only for the drugs named in it.

Our guide to drug licence forms 20, 21, 20B and 21B explains what each form allows.

Signs of editing

• The firm name, address or number is in a different font, size or alignment.
• The number is blurred while the rest of the page is sharp, or the other way round.
• The seal or signature looks pasted in, sits on top of text, or is cut off oddly.
• Dates have been overwritten or do not fit the space for them.
• A QR code or verification link that does not open the state government's own site, or opens a record for a different firm. Scan it yourself; do not rely on a screenshot of the result.

An old or superseded certificate

Since an amendment to the Rules in October 2017, sale licences no longer need renewal; they stay in force while the five-yearly retention fee is paid, unless suspended or cancelled. A supplier that shows only an old certificate with a "valid up to" date in the past has to explain what happened since. The same applies when the partners or proprietor named on the licence are not the people you are dealing with: after a change in the constitution of a firm, the old licence stays valid for at most three months unless a fresh licence is taken in the new firm's name.

A number that does not look right

There is no single national format for drug licence numbers. Each state uses its own pattern, which often carries the form number and sometimes a district or area code. You cannot prove a number is genuine by its shape, but you can notice when something is off: a number that looks nothing like other licences you hold from the same state, a number whose form does not match the form printed next to it, or the same number appearing on two different firms' papers.

Nobody is named in charge

A retail licence names the qualified person in charge, and a wholesale licence names the competent person under whose supervision sales are made. A certificate with those spaces blank or missing is incomplete.

Red flags in how the supplier behaves

• It sends a certificate image but will not give the licence numbers in writing.
• It will not let you see the original or visit the premises, or always has a reason why now is not a good time.
• Its invoices do not carry its drug licence number. The Rules require a dealer's cash or credit memo to show the dealer's name, address and licence number.
• It asks for payment in cash, or to a personal account or a third party.
• It offers branded, fast-moving products far below the usual trade price, or pushes you to decide quickly.
• It sends a different licence each time you ask, or a licence from another state for goods dispatched locally.

What to do instead: verify independently

1. Get the numbers and the state in writing. Ask for every licence number the supplier holds at the premises that will supply you, and the state that issued them.
2. Check the number with the issuing state's records. The licensing authority that issued the licence has the authoritative answer. Many state drugs control departments offer an online search; otherwise their office can confirm a licence. A verification service such as Pharma Mithra does the lookup for you and keeps a dated record of the result.
3. Match what the record says, not the copy. The firm name, premises address, licence forms and status on the state's record should match the business you are dealing with. Where the record and the copy disagree, the record wins.
4. Match the GSTIN to the same business. See how to verify a pharma supplier's GSTIN.
5. Keep a dated record and re-check. Save what you checked, the answer and the date, and re-check regular suppliers from time to time. Our step-by-step guide on how to verify a drug licence covers each check in more detail.

If you think a licence is fake

• Do not place the order or release any advance until it is resolved.
• Keep the copy you were sent, the messages it came with and any invoices, with dates.
• If you already hold stock from that supplier, set it aside and check it against the regulator's alerts; see what to do about NSQ and spurious drugs.
• Report it to the drugs control department of the state concerned. Using a forged licence is a matter for the regulator, not something to settle privately with the supplier.

This guide is general information about Indian drug and tax law for businesses, not legal advice. Rules and procedures can differ by state; your state drug control department or GST office has the final word on any individual case.