Delhi HC quashes Centre’s ban on manufacture, sale of Oxytocin by private cos

The Delhi High Court today quashed the Central government’s decision prohibiting the sale, distribution, manufacturing and import of Oxytocin by private companies in India..The judgment was delivered by a Division Bench of Justices S Ravindra Bhat and AK Chawla in a batch of petitions preferred by private Oxytocin manufacturers/sellers BGP Products Operations GmbH, Neon Laboratories, and NGO All India Drug Action Network. The petitioners had claimed that the decision to prohibit the sale, manufacture, distribution, as well as import of Oxytocin, was arbitrary and unreasonable..The Centre had, through its notification dated April 27, 2018, prohibited the sale, distribution, manufacturing and import of Oxytocin by private companies with effect from September 1, 2018..The said notification had vested in state-run Karnataka Antibiotics and Pharmaceuticals Ltd. the monopoly to manufacture and sell Oxytocin..The Court had imposed an interim stay on the notification in light of the pending adjudication..Agreeing with the petitioners, the Court observed that Oxytocin was one of the essential drugs notified by the Centre itself, and the decision to grant an monopoly to a single unit was “fraught with adverse consequences”. The Court noted that Centre “did not weigh in the dangers of concentrating manufacture of Oxytocin with one unit.” The decision could lead to restricted supply of the drug, which would have an adverse effect on maternal health, it observed..It thus held that the Centre failed to balance the interests of pregnant women, the right of the private companies to carry on their business, and the misuse of the drug in the field of veterinary science. The Court further stated that the decision seemed to be based on no scientific basis or study..The Centre had argued that the move was necessary to control and prevent the “rampant abuse” of Oxytocin. It claimed that the decision was taken after much deliberation and as a matter of last resort..Oxytocin, which is naturally produced by females, is administered artificially to induce labour pain, control bleeding after childbirth, or help new mothers lactate. One of the prominent misuses of Oxytocin is in the dairy sector to enhance lactation of livestock..BGP Products Operations was represented by Senior Advocates CS Vaidyanathan and Jayant Bhushan, along with Advocates Gayatri Roy, Soumili Das, Anirudh, Saral Minocha and Amit Panigrahi, briefed by L&L Partners..Neon Laboratories was represented by Advocates Ravikesh Sinha, while All India Drug Action Network was represented by Senior Advocate Colin Gonsalves..The Centre was represented by Solicitor General Tushar Mehta and Additional Solicitor General Maninder Kaur Acharya..Read the Judgement: