Why in News? 

The Drugs & Cosmetics (Compounding of Offences) Rules 2025 have recently been notified, introducing a system to settle minor offences under the Drugs & Cosmetics Act through fines instead of legal proceedings.  

Objective: To allow minor offences under the Drugs & Cosmetics Act to be compounded (settled via fines) rather than through lengthy legal proceedings. This will expedite the resolution of minor offences, improving the overall regulatory efficiency. 

Applicability: The rules are applicable to: 

• Pharmaceutical companies 
• Individuals involved in the manufacture, import, sale, distribution, or other activities under the Drugs & Cosmetics Act. 

Conditions for Compounding: First-time offenders are eligible for compounding. This ensures that only those who have not previously committed offences can opt for settling violations through fines.