UP govt cannot hold auction under new drug policy

Allahabad High Court terms the policy “irrational”

PTI | June 23, 2011



The Allahabad High Court has restrained Uttar Pradesh government from holding auctions under its new drug purchase policy whereby tenders of only those companies from outside the state, which had a yearly turnover of more than Rs 100 crore, are to be accepted.

A division bench comprising Justice Sunil Ambawani and Justice Sabhajeet Yadav passed the order, terming the new policy as “irrational”, “highly unreasonable”, “discriminatory” and violative of the fundamental rights guaranteed under the constitution, while hearing a petitition filed by a drug manufacturing company Omega Biotech Limited.

The petitioner had challenged the state government's new drug purchase policy, which came into effect on 16.05.2011, whereby tenders were to be accepted from only those companies situated outside UP which had a yearly turnover of more than Rs 100 crore while among the firms located within the state those with a turnover of not less than Rs 25 crore could be considered eligible.

The petitioner, a drug manufacturing company located outside Uttar Pradesh, alleged that by excluding firms registered outside UP having a turnover of less than Rs 100 crore, “the state government is monopolizing the purchase of drugs in favour of only a few large companies and firms”.

Fixing July 15 as the next date of hearing in the matter, the court directed that "as an interim measure" in any auction in the meantime "eligibility criteria of the previous year in respect of turnover will be applied".
 

Comments

 

Other News

Asiatic Lion population rises from 523 in 2015 to 891 in 2025

On World Lion Day 2026, environment, forest and climate change Minister  Bhupender Yadav celebrated India’s remarkable journey in lion conservation and reaffirmed the country’s unwavering commitment to protecting wildlife and biodiversity.   In a post on soc

Railways imposed ₹5.13 crore fine for food quality and hygiene violations

Indian Railways serve about 58 crore meals every year on an average. About only 0.0008% food quality related complaints are received on average. Based on complaints during the last three years, appropriate penal actions have been taken by IRCTC. Such actions include imposition of fines amounting to ₹5.13

STHAVAR: Why every Indian built asset needs a permanent digital identity

India has built digital systems for identity, payments, taxation, documents, logistics and public services. State governments, ministries, infrastructure agencies and urban local bodies have also created portals for land records, building permissions, project monitoring, property taxation and municipal s

Saksham Skill census identifies 22,000 job-ready candidates in one Mumbai ward

A first-of-its-kind AI-enabled skill census conducted in Mumbai`s H-West Ward has identified a potential livelihood pipeline of nearly 22,000 candidates, generated over 32,000 provisional job matches while revealing that 71.2 per cent of surveyed homemakers are willing to join the workforce, according to

GI tags: Scaling traditional wealth into global brands

Geographical Indication (GI) tags have emerged as a powerful tool for protecting India`s cultural heritage, while creating economic opportunities for local communities. By linking products to their place of origin, GI tags preserve traditional knowledge, prevent misuse, and enhance consumer trust. They h

BMC: 207 officials in ACB net, 112 still on duty, 68 retire before justice catches up

There are significant delays in the handling of corruption cases involving officials of the Brihanmumbai Municipal Corporation (BMC), a Right to Information (RTI) response obtained by rights activist Jeetendra Ghadge has revealed. As of 30 April 2026, 207 BMC officials face Anti-Corruption Bureau (A

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter