Why not buy 100% vaccines if you get discount, SC asks Centre

Why not buy 100% vaccines if you get discount, SC asks Centre

Bench questions Union govt.’s logic that it is getting the sop due to bulk orders

03/06/2021

Krishnadas Rajagopal NEW DELHI

The Supreme Court has questioned the Centre’s logic that manufacturers are selling it COVID-19 vaccines for a hefty discount because it places bulk orders. The court then asked the government why it cannot buy 100% of the vaccines at a discount instead of leaving the States to fend for themselves.

“The Central government justifying its lower prices on account of its ability to place large purchase orders for vaccines raises the issue as to why this rationale is not being employed for acquiring 100% of the monthly CDL [Central Drugs Laboratory] doses,” a Bench, led by Justice D.Y. Chandrachud, noted in a 32-page order.

The Centre can buy vaccines for ₹150, while the States have to shell out between ₹300 and ₹600.

If the Central government’s unique monopolistic buyer position is the only reason for it receiving vaccines at a much lower rate from manufacturers, it is important for us to examine the rationality of the existing Liberalised Vaccination Policy against Article 14 [right to equality] of the Constitution since it could place severe burdens, particularly on States/Union Territories suffering from financial distress,” the court held.

It said the Centre, with a ₹35,000 crore budget to buy vaccines, has money to spare unlike the States which have suddenly been burdened with the task to cough up funds for vaccines. “The Union Budget for 2021-2022 earmarked ₹35,000 crore for procuring vaccines. In the light of the Liberalised Vaccination Policy, the Central government is directed to clarify how these funds have been spent so far and why they cannot be utilised for vaccinating persons aged 18-44,” the court ordered.