Section 122F(4) in The Drugs and Cosmetics Rules, 1945
(4)On receipt of the application for the grant or renewal of such license, the licensing authority shall,-(i)verify the statements made in the application form;(ii)cause the manufacturing and testing establishment to be inspected in accordance with the provision of rule 122-I; and(iii)in case the application is for renewal of license, call for informations of past performance of the licensee.