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The court passed the order in a public interest litigation seeking withdrawal, revocation and

cancellation of the Pharmaceutical Policy, 2002 and status quo with regard to the operation
of the Drugs (Price Control) Order, 1995.1
The judgment was challenged by the Government in the Supreme Court, which
vacated the stay vide its order dated March 10, 2003 and ordered as follows:
We suspend the operation of the order to the extent it directs that the Policy dated
February 15, 2002 shall not be implemented. However we direct that the petitioner shall
consider and formulate appropriate criteria for ensuring essential and lifesaving drugs not to
fall out of the price control and further directed to review drugs, which are essential and
lifesaving in nature till 2nd May, 2003. 2
As a result DPCO 1995 continued to remain in operation, pending formulation of a new drug
policy as directed by the honorable court.

"Accordingly, the respondents are directed to consider and formulate appropriate criteria so as to
ensure that essential and life saving drugs to not fall out of price control and are further directed
to review drugs which are essential and life saving in nature in consultation with the Ministry of
Health and family Welfare. Until a list of essential and life saving drugs is prepared and such
essential drugs are brought into the basket of essential drugs under price control taking into
account other relevant factors as discussed above. Till such exercise is taken by the authorities
concerned as stated above, respondents are directed not to implement the impugned PP.2002
15.2.2002 (annexure G) in so far as it
relates to formulation of price control

1 http://www.business-standard.com/article/economy-policy/govt-moves-apex-courtagainst-stay-on-drugs-policy-102100401073_1.html
3 http://courtnic.nic.in/supremecourt/temp/ac%20921803p.txt