Even as debates are on over the jurisdiction of the Madras High Court stay orders and the over-riding powers of the DCGI under section 33(p) of the D&C Act, the DCGI has filed a caveat in the Shimla and Chandigarh High Courts. The filing of caveat in Shimla and Chandigarh is significant as a large number of pharma companies are located in these parts due to the tax holiday prevailing in these states.

The DCGI has filed the caveat in the Shimla and Chandigarh High Courts on December 1. The caveat will provide the DCGI a chance to give his side of the arguments to the court on the controversial FDC issue before the courts allowing the stay orders. With the filing of caveat, now the courts cannot allow ex-parte orders. The DCGI action comes in the wake of the Madras High Court giving stay orders to the pharma industry and its associations on the FDC issue.

"Yes, I have filed caveat in Shimla and Chandigarh High Courts as a large chunk of pharma companies are located in Himachal Pradesh. I will file caveat in other states too", DCGI Dr M Venkateshwarlu said.

The filing of caveat in Shimla and Chandigarh high courts is a strategic move as a large number of pharma companies are located in states under the jurisdiction of these two high courts. According to a conservative estimate, around 50 per cent of the total domestic pharma products are manufactured in the two tax-holiday states of Himachal Pradesh and Uttarkhand.

In fact, the DCGI had earlier planned to file caveat in all the high courts of the country as a pre-emptive move against the pharma companies obtaining stay orders from the high courts against the DCGI order to withdraw licenses to the contentious FDC drugs. But, some pharma companies and associations in south India acted in haste before the DCGI could file the caveat. The Madras High Court had already allowed stay orders thrice on this issue. Earlier, the Jammu based Ravenbhel Healthcare Pvt Ltd has obtained a stay order against the state drug controller's order to withdraw some of the combination drugs of the company from the market.