The Delhi High Court on Friday set aside the government's decision to cap condom prices by including it in the Drug Price Control Order (DPCO), saying the pharma pricing authority's orders on the issue were "illegal and unsustainable".
A bench of Chief Justice G Rohini and Justice Rajiv Sahai Endlaw set aside the November 4, 2013 and July 10, 2014 orders of National Pharmaceutical Pricing Authority (NPPA) by which a ceiling was put on the prices of condoms.
"The orders of NPPA dated November 5, 2013, and July 10, 2014, are illegal and unsustainable. In the result both the said orders are hereby set aside," the court said.
The court's verdict came on the plea of two pharma firms, Reckitt Benckiser and JK Ansell Ltd (JKAL), which had contended that their products were 'devices' and not 'medicines' and thus would not fall under the DPCO and hence, no cap can be put on the prices.
The firms had claimed that their products are luxury products "meant for pleasure" and sought clarification on whether the current ceiling would apply to only utility condoms and whether NPPA was proposing to fix a separate cap on "pleasure condoms".
In its petition, the pharma firms had argued that the low ceiling price would force bigger companies to stop production, which in turn would have a negative effect on population control measures.
The government, however, was of the view that since condoms help to prevent diseases, they come under the classification of 'medicines' and hence, their prices can be controlled.
It was also of the view that if luxury condoms were removed from the DPCO, then the manufacturers would flood the market with their expensive varieties and make their lesser priced contraceptives scarce.
The government also maintained that since condoms were currently in the national list of essential medicines, there could be no gradations like luxury and ordinary, where drugs are concerned.
Earlier, the court had queried as to what was the issue if consumers were willing to pay for premium or luxury male contraceptives.
