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The Supreme Court on Wednesday asked domestic tobacco companies to adhere to the directive mandating 85 per cent pictorial warnings on products. This regulation, which came into force in April, saw tobacco companies halt production in protest, challenging the ruling in court. Nearly 27 cases were filed in various courts across the country to stay implementation of the regulation.
Wednesday's verdict came after the Karnataka Beedi Association had approached the SC, challenging the regulation, saying it would ground the tobacco industry to a halt. In a packed courtroom in New Delhi, a two-judge Bench rejected the Karnataka body's plea to extend a stay it had obtained from the Karnataka High Court. The Bench, however, agreed to a request to move the rest of the appeals to the Karnataka High Court and decide on the matter in six weeks.
Shares of India's biggest cigarette maker ITC Ltd pared gains after the court ruling and ended 1.2 per cent lower on BSE. Godfrey Phillips also ended marginally down.
Mails sent to ITC and industry group Tobacco Institute of India elicited no response till the time of going to press.
Tobacco companies have been up in arms against the regulation because it makes warning on packs the most stringent in the world alongside Thailand. Besides beedi makers, tobacco farmers and traders too protested the regulation, saying it would impact business.
The World Health Organization, however, says tobacco-related diseases cost India $16 billion annually, prompting regulators to curb use.
