Why can't additional income from RBI be used to supply more vaccines? Kerala High Court asks Centre

The Kerala High Court has asked the Central government to consider if it could use surplus funds recently declared by the Reserve Bank of India (RBI) to procure more COVID-19 vaccines..The Court made the observation in the backdrop of reports that the RBI has approved the transfer of Rs 99,122 crore as surplus to the central government. .In view of this, the Justice Vinod Chandran orally observed today,."What is our (Kerala's) population? 136.7 million ... On Saturday, in the Indian Express, it is reported that RBI has given 99,000 crores as dividend to the Centre. More than half than projected in the budget … you have got about Rs 54 crores more. (Approximately) 137 crores people x (Rs) 150 or let us take it as (Rs) 250. That is only 34,000 crores. So what is the problem with you giving more?".The suggestion was made in the wake of COVID-19 vaccine shortages being faced across States in India and given that the Centre can procure the vaccines at a lesser price than the price fixed for State procurement. .Under the new policy, the Centre can procure the vaccines at Rs 150. On the other hand, the States can procure the vaccine at Rs 400 (COVISHIELD) and Rs 600 (COVAXIN).."You’ve got so much money. Why don't you do something about it? If the central government procures (vaccines), you get it at Rs 150 rupees ... Is it not the right time for you to do it?", Justice Chandran asked the Centre today. .Appearing for the Centre, standing counsel Raj Kumar responded that these are matters of policy. He added that vaccines were given for free for the age group of 45 years and above. About 8 lakh vaccines were given to Kerala, he informed. Further, he submitted that there is also an expert body that has been constituted now to look into matters concerning vaccination. .The Court, however, has urged the Central government counsel to confer with the authorities concerned on the suggestion made by the Court. ."You have additional income from RBI, why don't you use it for this purpose? We are asking you to ask your policymakers", Justice Chandran said. .Appearing in a plea challenging the differential pricing of vaccines and calling for the transfer of technology so that vaccine manufacture can be ramped up, Advocate Prashanth Sugathan today highlighted that vaccinations have reduced after the new policy was introduced. .The Court responded that this may be on account of shortages However, Sugathan pointed out that the policy was intended to incentivize more vaccinations.."We find a lot of private companies are giving it. But the public is not getting from government channels. That is because state governments have to compete with each other", he submitted..Justice Chandran, in turn, observed that this is where the role of the Central government may come in.."That is where central govt comes in. Now you (Centre) have excess from RBI. Why don't you give it ... at least to the poor?" he asked the Advocate Raj Kumar..Justice Chandran added, addressing the Central government counsel,"This is not the time to look at federalism and all that. Why don't you put it to your ministry and come back?".The Court added in its order:."What we have observed is based on simple arithmetic and not on the complex issues of finance and economics; in which we lack expertise and hence we query the Union Government to respond. We are sure the State Governments too could assist in such procurement and after the vaccination is completed; the manufacturers could be compensated, if need arises and measures could also be brought in to obtain fair reimbursement from the haves. We are aware of our limitations in interfering with policy formulations and hence at this point refrain from issuing any positive directions but request the policy makers to ponder over our observations and come back with a response within a week from today.".The State today informed that the Kerala government has floated a tender to procure more vaccines. The Court, however, noted that procurement through tenders may take time. .Justice Chandran added that there may be private hosptials willing to procure the vaccines from manufacturers. While so, the State should cap the prices levied so that there is no unjust enrichement, he said. .A Bench of Justice Chandran and MR Anitha was hearing a batch of matters concerning COVID-19 vaccination..Earlier, a Bench headed of Justices Raja Vijayaraghavan V and Anitha had asked the Centre to place on record a timeline within which the State of Kerala would be provided its allocated share of vaccines by the Centre. .[COVID-19] When are you going to give vaccines to Kerala? If you delay, new mutations may come up, people will die: Kerala High Court to Centre.The Centre informed today that the statement has been prepared and submitted, but the Registry is yet to accept the same. .The Court has intimated that it would be passing an interim order seeking the Centre's response on whether it would consider procuring more vaccines using its surplus funds. .The matters are expected to be heard again on June 2..[Read Order].Read a live account of the hearing:.Follow Bar and Bench channel on WhatsAppDownload the Bar and Bench Mobile app for instant access to the latest legal news.