Drug purchase policy: Last year's norms to apply this year also

ALLAHABAD: In an interim order, the Allahabad High Court directed the state government that the eligibility criteria for drug purchase policy of previous year in respect of turnover will be applicable this year also. The court passed this interim order as the additional advocate general stated that the tender process can not be delayed and drugs and medicines have to be supplied to government hospitals from July onwards.The order was passed by a division bench of Justice SunilAmbwani and Justice Sabhajeet Yadav on a writ petition filed by M/s OmegaBiotech Limited and others.The petitioners, who are engaged inmanufacturing of drugs and medicines outside UP, challenged the stategovernment's purchase policy (dated May 16, 2011) for medicines and equipmentsin so far as it excludes companies and firms from outside UP and having turnoverof less than Rs 100 crores in each year for last three years from tender processand makes them ineligible.In the policy applicable till the previousyear, companies and firms that had at least two years out of five years andtotal turnover of Rs 1 crore, were eligible for participating in the tenderprocess.Passing this interim order, the bench remarked, "primafacie, we find that the question involved in the case is the change of policy toexclude the drug and pharmaceutical manufacturing companies and firms fromoutside the State of UP and to create monopoly in favour of only those firmsincluding multinationals, who have turnover of more than Rs 100 crores in eachof the last preceding three years. We also find that the total amount earmarkedfor purchase of drugs and medicines in the state of UP for the listed drugs andmedicines to be supplied in Sub Center PHC and CHC is only Rs 303 crores andthus the restriction of a turnover of Rs 100 crores in each of the precedingthree years is irrational, highly unreasonable, excessive and is violative ofArticle 14 and 19(1)(g) of the Constitution of India. We are further prima facieof the opinion that in the matter of purchase by the state government, theprescription of different eligibility criteria for the manufacturers of drugs inthe state of UP and of those who have registered outside the state of UP iswithout any reasonable basis."The bench has directed to hear thiscase on July 15.