On March 17, 2016, state government of Bihar through a notification denied issuing further licences to manufacture ayurvedic and homeopathic medicines having alcohol content in view state prohibition, it was enforced from April 1, 2016.
Samrat Chemical Industries and Shree Baidyanath Ayurved Bhawan Pvt Ltd filed the petition, allowing the petition Patna HC observed that state government does not have power to issue such orders denying issuance of licence to the companies for preparation of alternative medicines.
Counsel for state government argued that it could be misused for the purpose of manufacturing alcohol in the state if it allowed the companies to use spirit for medicinal purpose.
In response to the argument petitioner contended that likelihood of misuse could not be the ground to prohibit any firm from carrying out its activities and it is central government which has the power to do so and even while doing so, the Centre will have to explain the reasons that it will have harmful effects on the people.
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