A single bench of Justice N Kirubakaran passed an order with respect to the growth of the Pharma sector in India. The Bench was hearing two writ petitions moved by a Chennai-based generic research cum manufacturing company, Vinkem Labs.
The company required funds for its Corporate Dept Restructuring(CDR) but lacked any kind of support by the banks. The company alleged that the banks were giving unnecessary justifications for refusing their viable project. The company further contended that they provide to access to quality life-saving medicines to patients suffering from one of the dreaded diseases.
The Court observed that in earlier times India was pioneering in terms of its growth in pharmaceutical sector. Gradually China grabbed this sector too due to its cheap production cost. Consequently, imports from China increased and led to our heavy dependence on the enemy country.
Court has passed a series of directions including constitution of a Committee comprising of Members from the Central Ministries of Pharmaceuticals and Finance, as well as representatives from Bank of India and NABARD, which would be responsible to look into the matter.