Section 68A(3) in The Drugs and Cosmetics Rules, 1945
(3)If the licensing authority is satisfied that the applicant is in a position to fulfill the requirements laid down in these rules, he shall prepare a report to that effect and forward it [along with the application and the license (in triplicate) to be granted [***] [Substituted by G.S.R. 89(E), dated 14.2.1996 (w.e.f. 14.2.1996).], duly completed] [Added by S.O. 2139, dated 5.6.1972 (w.e.f. 12.8.1972).][to the Central License Approving Authority:Provided that if the licensing authority is of the opinion that the applicant is not in a position to fulfill the requirements laid down in these rules, he may, by order, for reasons to be recorded in writing, refuse to grant [***] [Inserted by G.S.R. 923(E), dated 14.12.1992 (w.e.f. 14.12.1992).] the license, as the case may be.