ITC shuts down cigarette factories again

Move follows Health Ministry's directive to print tobacco packs with 85% health warnings

Following Supreme Court's interim order on Wednesday, asking tobacco companies to comply with the Union health ministry's directive to print tobacco packs with 85% health warnings, cigarette major ITC has shut its factories.

"The Supreme Court observed that all parties should endeavour to follow the rules. In the meantime, the company has had to shut its cigarette factories from May 4, 2016 until the company is in a position to comply with the interim requirements pending hearing in the Karnataka high court," the company said in a filing with the Bombay Stock Exchange.

On Wednesday, a two-judge bench of Supreme Court passed an interim order asking tobacco producers to fall in line with the directive till the decision on the various cases are made. Also, the country's apex court ordered to expedite the hearing of all writ petitions challenging the larger health warning directive and all similar writ petitions pending in various high courts be transferred to the Karnataka High Court for disposal on merits.

By the same order, the Supreme Court also transferred a PIL pending before the Rajasthan High Court, to the Karnataka High Court, to be heard along with the other writ petitions.

On April 1, ITC and most of the other cigarette makers had shut factories, after the directive on 85% pictorial warnings came into effect. Cigarette and other tobacco product makers had taken legal recourse against the Centre's move. However, after obtaining a favourable ruling from a high court, ITC and some of the other cigarette makers had resumed production April 15 onwards.

The Tobacco Institute of India, which represents 98 percent of India's duty-paid tobacco producers too has asked its members (that include ITC and Godfrey Philips etc) to adhere to the directive till the ruling in the Karnataka High Court comes out.

"In the meantime, it was observed that all parties should endeavour to follow the rules. A copy of the order is awaited," TII director Syed Mahmood Ahmad said. Several calls and message to Godfrey Philips went unanswered. It is not known if this company too will fall in line with ITC to halt production.

The Union health ministry on September 24, 2015, had prescribed 85% pictorial warnings on tobacco products' packaging, which came into force from April 1, 2016. At present, pictorial warnings must take up 40% of the packaging surface.