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Madras High Court· 21 July 2026

Does deceiving consumers with counterfeit branded products replicating security features attract Section 318(4) of the BNS?

2. Raja @ Valliappan S/o.Nachiyappan, 2nd Cross Srinivasan Nagar, Ariankuppam Commune, Puducherry v. 1. The State of Puducherry Rep by, The Inspector of Police, CBCID Police Station, Puducherry
Crl.O.P.No.35020 of 2025 · Crl.O.P.No.35020 of 2025
Coram: G.K.Ilanthiraiyan
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Answer

Yes. Where counterfeit medicines bear the registered trademark and replicate the security strip to induce distributors, retailers and consumers into believing them genuine, this constitutes dishonest inducement to deliver property by monetary benefit, attracting Section 318(4) of the BNS.

Headnote

Drugs and Cosmetics Act, 1940 — s.32 — s.32(3) — Bharatiya Nagarik Suraksha Sanhita, 2023 — s.173 — Copyright Act, 1957 — s.13 — s.51 — s.63 — s.65 — Bharatiya Nyaya Sanhita, 2023 — s.318(4) — FIR quashing — Section 482 — Multiplicity of FIRs — Overlapping remedies — Drugs and Cosmetics Act, 1940 — s.32(3) — Saving clause — Concurrent prosecution under other laws — Held: Section 32(3) of the DC Act is a saving clause that explicitly permits prosecution under other laws even where an FIR is registered for offences also falling under Chapter IV of the DC Act. A police officer is barred only from prosecuting Chapter IV offences exclusively triable by the Drugs Inspector, and is not barred from investigating offences under other enactments such as the BNS. (¶6) Copyright Act, 1957 — s.13(1)(a) — s.2(c) — s.51 — Doctrine of overlapping remedies — Concurrent invocation with DC Act and BNS — Held further: The Copyright Act is a special statute operating independently, and the doctrine of overlapping remedies permits its invocation simultaneously with proceedings under the DC Act and BNS where the label and packaging design of a pharmaceutical product constitutes an original artistic work under Section 13(1)(a) read with Section 2(c), so that unauthorised reproduction attracts Sections 51, 63 and 65. (¶7, 8) Bharatiya Nyaya Sanhita, 2023 — s.318(4) — Dishonest inducement — Deception of consumers through counterfeit branding — Held further: Where counterfeit products bear the registered trademark and falsely represent the second respondent as manufacturer, replicating security features to deceive distributors, retailers and consumers into believing the products genuine, this constitutes dishonest inducement to deliver property by monetary benefit, attracting Section 318(4) of the BNS. (¶9, 10) Code of Criminal Procedure, 1973 — s.154 — Section 482 — Multiplicity of FIRs — Quashing at threshold — Held further: Registration of a subsequent FIR based on distinct seizures, discovery of manufacturing facilities and QR-code linkage is not registration for the same occurrence as earlier FIRs, and since the FIR is not an encyclopaedia and discloses prima facie commission of a cognizable offence, the investigation cannot be interdicted at the threshold under Section 482. Petition dismissed with direction to complete investigation and file a final report within twelve weeks. (¶11, 12, 15, 16)

In the Court's own words
Paragraph 9Further the counterfeit products are not only bearing the second respondent’s registered trademark but also falsely represented the second respondent as the manufacturer. Therefore, by using the second respondent name and brand, the accused are deceiving the second respondent and its consumers, who purchase these products believing them to be manufactured by the genuine manufacturer. The seized counterfeit products even replicated the 3D multi colour designed security strip applied on original packages as evidenced by the Zircon report submitted to Drug Inspector, Agra. Therefore, the accused induced distributors, retailers and ultimately consumers to believe that the counterfeit medicines were genuine products as manufactured by the second respondent. Hence, it constitutes dishonest inducement to deliver property by way of monetary benefit to the accused.
Paragraph 10That apart, the second respondent received so many complaints from aggrieved patients and consumers who were supplied with counterfeit products. On verification of the product samples and also on the report from the laboratory, it confirms the spurious nature of the products. Hence, it establishes that multiple identifiable persons have been deceived and defrauded thereby causing wrongful loss to the second respondent. Therefore, it constitutes the offence under Section 318(4) of BNS and hence the judgment relied upon by the learned Senior Counsel appearing for the petitioners are not helpful to the case on hand.
Acts & Sections
s.32 Drugs and Cosmetics Act, 1940s.32(3) Drugs and Cosmetics Act, 1940s.22(1)(d) Drugs and Cosmetics Act, 1940s.27(d) Bharatiya Nyaya Sanhita, 2023s.17B(b) Bharatiya Nyaya Sanhita, 2023s.276 Bharatiya Nyaya Sanhita, 2023s.318(4) Bharatiya Nyaya Sanhita, 2023s.61 Bharatiya Nyaya Sanhita, 2023s.173 Bharatiya Nagarik Suraksha Sanhita, 2023s.154 Code of Criminal Procedure, 1973s.58 Code of Criminal Procedure, 1973s.482 Code of Criminal Procedure, 1973s.13(1)(a) Copyright Act, 1957s.2(c) Copyright Act, 1957s.51 Copyright Act, 1957s.63 Copyright Act, 1957s.64 Copyright Act, 1957s.65 Copyright Act, 1957s.420 Indian Penal Code, 1860s.79 Trade and Merchandise Marks Acts.78 Trade Mark and Merchandise ActArticle 142 of the Constitution of India

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Also decided in this judgment
Does Section 32(3) of the Drugs and Cosmetics Act bar police investigation of offences under other laws?Can the Copyright Act be invoked concurrently with the Drugs and Cosmetics Act and BNS for the same counterfeit goods?Can an FIR be quashed under Section 482 merely because earlier FIRs were registered for related counterfeiting allegations?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Madras High Court. Corrections