In Brief
The State of Uttar Pradesh purchased Ayurvedic medicines solely from Indian Medicines Pharmaceutical Corporation Limited (IMPCL) through nomination without inviting tenders. The High Court set aside this practice, holding that the National AYSUH Mission guidelines require transparent procurement. The Supreme Court dismissed the State's appeal, holding that paragraph 4(vi)(b) places IMPCL and other eligible entities (PSUs, State pharmacies, cooperatives) on equal footing. While government may deviate from tenders in exceptional circumstances, the State failed to prove IMPCL is the sole quality supplier. The Court reaffirmed that government contracts must comply with Article 14's non-arbitrariness standard and inviting tenders is the preferred transparent method of allocation.
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