Drugs and Cosmetics Act, 1940 | Updated 7 October 2026

Section 32B - Compounding of Certain Offences under the Drugs and Cosmetics Act, 1940

Section 32B permits specified offences under the Drugs and Cosmetics Act, 1940 to be settled through compounding, subject to statutory conditions and payment of the prescribed amount. Compounding means an authorised legal settlement of an eligible offence, resulting in the termination of proceedings for that offence. It is not a general right to settle every violation under the Act.

Current legal position: The Jan Vishwas (Amendment of Provisions) Act, 2023 (Act 18 of 2023), effective for these changes from 31 December 2024, added section 27(d) and section 27A(ii) to the eligible provisions. The Drugs and Cosmetics (Compounding of Offences) Rules, 2025, notified on 24 April 2025, prescribe the administrative framework.

Meaning and scope of Section 32B

Section 32B(1) - Offences that may be compounded

Despite the reference to the Code of Criminal Procedure, 1973 in the statutory wording, the provision allows compounding before or after institution of prosecution for eligible offences under the following provisions, including where committed by a company or its officer:

Section 13(1)(b): the specified penalty for contravention of the import-related provisions.
Section 27(d): the residual category of contraventions concerning manufacture, sale or distribution of drugs, subject to the precise punishment applicable.
Section 27A(ii): the specified category of contraventions concerning cosmetics.
Section 28: failure to disclose the name and other particulars of the manufacturer or other relevant person when legally required.
Section 28A: failure to maintain prescribed documents or furnish required information.

The provision excludes offences punishable with imprisonment alone or with imprisonment and fine. Accordingly, listing a section does not make every offence under it compoundable: the actual punishment and facts must be checked. Subsequent offences cannot be compounded under Section 32B.

Compounding authority and amount

The Central Government, a State Government, or an officer duly authorised by the relevant Government may compound eligible offences. The payment is credited to that Government and is determined in accordance with the applicable rules. The compounding amount cannot exceed the maximum fine prescribed for the offence.

Section 32B(2) - Court permission

If the accused has been committed for trial, or has been convicted and an appeal is pending, compounding requires leave of the court to which the accused was committed or the court hearing the appeal, as applicable.

Section 32B(3) - Effect of compounding

After valid compounding, no proceedings or further proceedings may be taken against the offender for the compounded offence. If the offender is in custody in respect of that offence, the statute provides for immediate release. Compounding does not automatically dispose of separate, non-compounded offences.

Drugs and Cosmetics (Compounding of Offences) Rules, 2025

The 2025 Rules, issued under Section 33(2)(r) read with Section 32B, took effect on 24 April 2025. They establish the designated compounding authority and the procedure for applications, examination of eligibility and decisions. Applicants should follow the notified Rules and the latest instructions issued by the Central Drugs Standard Control Organisation (CDSCO).

How to apply for compounding

Check eligibility: identify the exact offence, penalty provision, whether imprisonment is prescribed, and whether it is a subsequent offence.
Prepare the application: use the form under Rule 4, stating the applicant's particulars, product and licence details, alleged contravention, case facts and relevant supporting records.
Submit to the competent authority: follow the applicable central or state notification and current filing directions, including any requirements concerning physical or electronic copies.
Respond to scrutiny: provide additional information sought by the authority and comply with any procedural requirements.
Obtain the order: where approved, pay the amount directed and obtain the formal compounding order; seek court leave where Section 32B(2) requires it.

For the prescribed form and detailed requirements, consult the CDSCO guidance document, standard operating procedure and latest CDSCO circulars, including the July 2026 clarification concerning Rule 4 applications.

Legislative history and important limitations

Section 32B was inserted by the Drugs and Cosmetics (Amendment) Act, 2008 (Act 26 of 2008), section 13, with effect from 10 August 2009. Its scope was expanded by the Jan Vishwas (Amendment of Provisions) Act, 2023, with the relevant amendment effective 31 December 2024. The text still refers to the Code of Criminal Procedure, 1973; procedural questions must also be assessed in light of the Bharatiya Nagarik Suraksha Sanhita, 2023 and applicable repeal, savings and transition provisions.

Section 32B is an exception confined to specified offences and is not a general amnesty. The competent authority must consider the statutory requirements and the applicable rules. The amount payable, procedural eligibility and the effect of any parallel proceedings depend on the facts of the case.

Official legislation and guidance

Note: This article summarises the statutory provisions for general information. For a specific prosecution or application, consult the Act, notified rules and orders of the competent authority.