Business
Canadian court hands Organigram partial win in ‘edible’ cannabis dispute
Health Canada breached its duty of procedural fairness when it decided that licensed producer Organigram Holdings’ lozenges should be classified as “edible” cannabis rather than extracts, a federal justice said in granting the company’s application for judicial review.
Justice Cecily Strickland kicked the decision back to Canada’s health department to review its initial decision and make a new determination involving the lozenges, known as Jolts.
Millions of dollars could be at stake in the outcome of the legal dispute, given that cannabis extracts are potentially a much more lucrative product than edibles under Health Canada’s classification system for ingestibles.
In an interview with MJBizDaily, Organigram CEO Beena Goldenberg said the decision is a “win” for the company, even though Health Canada might ultimately return the same decision.
“Our decision to seek a judicial review was unprecedented in the cannabis industry,” she said.
Still, the federal court did not address Organigram’s key assertion: Health Canada had treated the company unfairly by deciding Organigram needed to yank the lozenges from store shelves years after they were introduced into the market.
The justice also did not rule on the “reasonableness” of Health Canada’s initial decision.
Moncton, New Brunswick-based Organigram had asked the court to quash the Health Canada decision, saying the ruling effectively killed off the market for the products, which had become an increasingly popular segment of the struggling cannabis sector.
Historic decision
Still, Strickland’s decision is historic when it comes to the cannabis industry.
It was the first time a licensed producer applied for a judicial review of a decision made by Canada’s federal government.
Organigram originally launched Jolts in August 2021. Health Canada’s crackdown on extracts wasn’t evident until early 2023.
The distinction between a cannabis edible and extract has major implications for the marketability of those products in Canada.
That’s because any cannabis product classified as an “extract” has 100 times more allowable THC per package than a product classified as an “edible,” making it more appealing to some consumers.
Health Canada did not immediately respond to queries from MJBizDaily, so it’s unclear how long the regulator will take in making its redetermination.
“Essentially what she (the justice) is saying to Health Canada is they have to reissue the compliance letter, and you have to give Organigram the opportunity to respond to it, including the issues raised at the 11th hour,” Trina Fraser, a partner at Brazeau Seller Law in Ottawa, Ontario, who leads the firm’s cannabis practice, told MJBizDaily in a phone interview.
“And then you have to make the decision over again.
“Organigram went to the federal court with a plea that the minister’s decision was unreasonable. But. unfortunately, we didn’t get a decision on that issue.”
The ruling
Strickland said the Canadian government failed to give Organigram an adequate opportunity to respond to one of the key factors on which Health Canada relied when making its decision.
“When all of the circumstances of the case are taken into account, I find that there was a breach of procedural fairness arising from inadequate notice of Health Canada’s reliance on a factor contained in the Compliance Promotion Statement and, as a result, that Organigram was not afforded a meaningful opportunity to respond to that concern and thereby prejudiced in its ability to respond to that concern,” the justice noted in her decision.
According to Strickland, Health Canada made the key decision based in part on an internal document called the Classification Policy, which was not referenced in the federal agency’s decision involving the lozenges.
The Classification Policy focuses on the classification of ingestible cannabis products and is dated Sept. 8, 2022.
“The specific concerns raised in the notice of noncompliance are said to have been based on the classification factors of product representation, product format, and public perception or history of use,” Strickland wrote.
“These are the three factors set out in the Classification Policy, which appears to be an internal Health Canada document.”
However, the Classification Policy is not referenced in the notice of noncompliance provided to Organigram and other licensed producers.
Strickland also said the lack of notice and disclosure of Health Canada’s concerns arising from a fourth factor – the physical characteristics of the Jolts – “precluded Organigram from responding to concerns not previously raised in the notice of noncompliance.”
The justice added that Health Canada introduced the fourth factor in its decision – the product’s sensory and physical characteristics – but that was omitted from the notice of noncompliance sent to the company.
In effect, Strickland ruled that Organigram was not given an opportunity to respond to Health Canada’s objection to Jolts’ size and shape or suitability for sublingual use, which was one of the key reasons Health Canada rejected the lozenges being classified as an extract.
In her ruling, the justice “found no evidence in the record before me to support (Health Canada’s) inference that the size and shape of the Jolts may cause consumers to not follow the instructions for use.”
Organigram’s Goldenberg, for example, told MJBizDaily the instructions on the Jolts package “say to put it under your tongue or between your gum and cheek for sublingual absorption.”
Strickland also flagged Health Canada’s procedures.
“The process by which Health Canada assesses the classification of products, as submitted by producers, as either edible cannabis or cannabis extract, is relatively new and appears to have been in transition during the time leading up to the making of the decision,” she said.
“Health Canada should consider clearly identifying the policy(s) and procedures upon which it will rely in making determinations of noncompliance based on the classification of cannabis products and inform concerned parties concerned accordingly,” she suggested.
‘Action plan,’ if necessary
For her part, Goldenberg called the decision a “win.”
“I think the verdict was a win for Organigram in that Health Canada was found to have procedural unfairness, they had brought other factors into their determination of Jolts as an ‘edible’ than what was in the original guidance to licensed producers in terms of product classification,” she said.
Goldenberg said the company plans to provide the agency with some relevant facts.
“For example,” she said, “one of the points Justice Strickland made was that Health Canada added a factor (in its final decision) of the physical size and shapes of the Jolts.”
Goldenberg contends Health Canada’s point of view was that, given the size and shape, the product doesn’t fit well under the tongue.
“But our product was designed specifically for that use (to fit under a tongue or between a gum and cheek),” she said.
“We have some new information to share with Health Canada. Maybe they might not consider it; maybe they will come to the same determination.
“But they have to go back and revisit it, and they have to provide us a chance to provide that information.”
What happens if Health Canada still renders the same decision?
“We’re assessing various options with respect to what we want to do with the future of Jolts, based on whatever Health Canada’s reconsideration is,” Goldenberg said.
“At this point, we don’t want to go down that path until the door is (fully) shut on what was a successful product.
“Depending on how quickly this reassessment happens, we will have an action plan in place.”
The justice’s decision is available here.
Source: https://mjbizdaily.com/canadian-court-hands-organigram-partial-win-in-edible-cannabis-dispute/
Business
Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light
Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).
The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.
India’s Indigenous LEO Satellite Vision
Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.
The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.
According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.
The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.
Regulatory Process Moves Forward
Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.
The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.
Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.
Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.
Broadband, Mobile Connectivity, and Strategic Applications
Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.
The company also intends to establish 20 to 22 ground stations across India to support network operations.
Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.
Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.
Major Step for India’s Space and Telecom Sectors
Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.
The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.
Business
Alleged Crores Pharma Scam Mastermind Arrested from Surat
After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.
Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.
Fake Business Deals and Dishonoured Cheques Used in Fraud
Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.
In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”
Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.
Multiple Identities and Repeated Fraud Pattern
Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.
Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.
Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.
Multi-State Surveillance Leads to Arrest in Surat
A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.
Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.
Growing Threat of Corporate Identity Fraud
The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.
Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.
Experts Urge Stronger Due Diligence in High-Value Transactions
Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.
Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.
Investigation Under Digital Markets Act Gains Momentum
The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.
Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.
Industry Groups Demand Swift Action
Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.
Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.
In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.
Google Denies Allegations
Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.
However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.
Potential Billion-Euro Penalties
If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.
Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.
Wider Implications for Big Tech
The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.
A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.
As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.
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