While Chief Minister Manohar Joshi announced a stay on the levy during a meeting with chemists on Sunday, the Brihanmumbai Municipal Corporation (BMC) received the written order permitting the corporation to suspend the levy at 9.30 pm today.

The decision to suspend the octroi will be immediately conveyed to the checkposts, L S Kadam, assistant assessor and collector with the BMC, said.

With today's order from the state government, the Retail and Dispensing Chemists Association is set to call off their two-month agitation banning import of drugs for local consumption. It had earlier said it would call off its agitation when the written order arrived.

Last week, the association had posted volunteers at the checkposts to halt vehicles bringing medicines into the city. About 12-15vehicles were thus sent back. Following this, manufacturers failed to dispatch consignments for local consumption as chemists had altogether stopped placing orders.

During the agitation, sale of medicines had shrunk by 40 per cent since August. Stocks of some medicines, including life-saving drugs like those for cardiac failure and brands of IV-fluids, were completely depleted.

When the government's order failed to arrive during working hours today, a civic employee was dispatched to the Urban Development Department to collect the document. He was handed the order at around 9.30 pm.