Section 122F(5) in The Drugs and Cosmetics Rules, 1945
(5)If the licensing authority is satisfied that the applicant is in a position to fulfill the requirements laid down in the rules, he shall prepare a report to that effect and forward it [along with the application and the license (in triplicate) to be granted or renewed, duly completed] [Substituted by G.S.R. 601(E), dated 24.8.2001 (w.e.f. 24.8.2001).] 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 or renew the license, as the case may be.
