Concept:
Under the Drugs and Cosmetics Rules, different forms are used to grant licences for the sale of different categories of drugs. The category of the drug (whether it is an ordinary drug or a special biological/Schedule C and C(1) item) decides which form is used and whether it is for retail or wholesale.
Step 1: For drugs other than those specified in Schedule C, C(1) and Schedule X, the retail (over-the-counter) sale licence is granted in Form 20. The wholesale licence for the same category of drugs is granted in Form 20-B.
Step 2: Form 21 and Form 21-B are used for Schedule C and C(1) drugs (retail and wholesale respectively). Since the question specifically excludes Schedule C, C(1) and X, the correct form for retail sale is Form 20.
Answer: Option (1) — A retail licence for such drugs is issued in Form 20. (1)