States can't be left in lurch: SC to Centre on Covid-19 vaccine dual pricing

The Centre said the entire eligible population would be vaccinated by the end of 2021

The Supreme Court on Monday posed tough questions to the Centre in connection with its Covid vaccine policy and pointed towards various flaws, particularly the shortage of vaccine doses, and its unavailability in rural areas, pricing, and registration for vaccination.

Though the Centre maintained that it expected to vaccinate all by the end of December 2021, a bench presided over by Justice D Y Chandrachud sought to know the rationale for the dual policy of procuring certain amount of vaccine and not willing to give it to states at the same rate.

The top court asked the Centre to file a copy of its policy document on vaccine procurement and its pricing within two weeks, and also consider amending it to make it inclusive for rural areas.

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The bench, also comprising Justices L Nageswara Rao and S Ravindra Bhatt, gave two weeks time to the Centre to explain its logic on pricing of Covid-19 vaccines and how the existing policy was framed.

"We are keen to understand the rationale behind dual pricing,” the bench said.

Taking up a Suo Motu matter, the court asked why several state governments and municipal corporations were now issuing global tenders to procure vaccines while noting that the Centre has failed to submit a national policy document on Covid vaccines to date.

The bench also asked the Centre, why it has left it to manufacturers to fix the price of vaccines, and stressed that the Centre has to take over the responsibility for one price for the nation. It also asked why states had to pay more for the vaccines than the Centre.

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"I was reading the Constitution. Article 1 says Bharat is a Union of States. When the Constitution says that then we follow the federal rule. The Government of India has to procure the vaccines and distribute them. Individual States are left in lurch," Justice Chandrachud asked Solicitor General Tushar Mehta.

The bench also pointed out it refrained from entering the realm of policy-making as it would “hamper” initiatives undertaken by the Centre for negotiations with vaccine manufacturers. It referred to the visit of the External Affairs Minister to the US for negotiations which showed that the Centre was working seriously.

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The bench noted that for the population above 45 years, procurement is by Centre as of May 1, and for below 45, 50 per cent to states is by manufacturers on pro-rata basis.

"The price is determined by Centre. What is the basis for the Centre to say that for 45 and above we will supply and procure vaccines free of charge and for below 45 states will have logistical arrangements?" the bench asked.

The bench further said that the government's rationale was high mortality in the 45+ group, but in the second wave this group was not seriously affected, instead, it was the 18-45 age group.