Kerala High Court declines to grant interim relief in private labs' challenge to Rs 500 cap for RTPCR Tests in Kerala

The Kerala High Court on Friday declined to grant any interim relief to ten private testing laboratories which had challenged the Kerala government's recent decision to cap the price of COVID-19 RTPCR tests by private laboratories at Rs. 500. .Single-judge Justice N Nagaresh, who heard the matter, opined that he was disinclined to grant any interim order at this stage, given that prima facie, the State had based its decision to cap the price at Rs. 500 on market surveys and a study conducted by the Kerala Medical Services Corporation (KMSCL).."Prima facie ... government has arrived at rates of RTPCR tests after conducting a market survey and study through KMSCL... discernible from statement filed that cost of RTPCR test, including swab collection would come to Rs 135-240 only. It is also stated that the charges in many of the other states in the country including Haryana, Telangana, and Uttarakhand are within the same range. Therefore, I do not find any reason to pass an interim order," the order passed today stated..Senior Advocate S Sreekumar, appearing for the petitioners, contended that the decision to cap the price at Rs. 500 was taken without any consultation with the stakeholders. He argued that the private laboratories could have shown data on the actual costs incurred by them if they had been given the opportunity. .The decision to impose such a ceiling without consultation with the labs was violative of natural justice principles and is forcing private laboratories to conduct tests in a manner they cannot afford, he added. .He also highlighted that the State's stance on the issue had earlier been rejected by another Bench of the High Court..Appearing for the State, Additional Advocate General Ranjith Thampan told the Court that there were several complaints that the rate of RTPCR tests in Kerala was the highest in the country at Rs 1,700. He referred to other States in the country pricing the COVID-19 test at Rs 400-500. .He also added that only 10 of the 65 private laboratories in the State have challenged the latest decision to cap the RTPCR prices at Rs 500. DDRC, one of the largest testing laboratories, has also priced their RTPCR test at Rs 500. ."Supposing the petitioner has any grievance, in the judgment of Justice Asha... the order was not quashed. It was only said that the representatives should be heard again... In the present case, except these 10 labs, all other 55 labs do not have a complaint", the AAG added.."Again my learned friend says the very same thing... what is the change of circumstances milord?... Merely because some of the labs have not challenge the same, we cannot afford... The very same thing is being repeated which was not accepted by this court," Sreekumar responded. .Whereas Advocate M Ajay, for the KMSCL, sought to make submissions to supplement the AAG's arguments, the Court said that it was not necessary and that it was not inclined to pass an interim order. .Sreekumar urged the Court to direct that no coercive measures be taken, as interim relief, against private laboratories who could not adhere to the Rs 500 cap for RTPCR tests. Until the stakeholders are consulted and a decision taken thereafter, he requested that private laboratories be allowed to continue pricing RTPCR tests as done earlier. .However, the Court declined to entertain the request.