More Stories

Informist, Tuesday, Sept. 29, 2026

 

--SC: Pharma cos not bothered, don't know why they asked to fix drug prices 

--CONTEXT: SC on sale of essential medicines at inflated price 

--SC on inflated price of drugs: Corporate hospitals are industries, not svc 

--SC to hear plea against sale of essential medicine at inflated price Oct 12 

 

NEW DELHI – Noting that a cancer drug of INR 3,520 to retailers was being sold for INR 22,427 to people, the Supreme Court Tuesday said pharma companies were not bothered about the plight of an ordinary person. "We don't know why they (pharma companies) are asked to fix prices like this. This is carnage. Plain and simple," a bench of Justice Vikram Nath and Justice S.V.N. Bhatti said. 

 

The apex court asked the government why there is a distinction between essential and non-essential medicines for pricing of drugs. "Why not keep a 16% (retail) margin on MRP (maximum retail price) on everything?" the court said. Corporate hospitals tell patients to buy from their chemist and if the patient brings it from outside the hospitals, they do not assure treatment, the court said. If that patient is taking treatment under a government scheme, who reimburses it, the court asked, adding that ultimately the taxpayer pays. Corporate hospitals are industries; they are not a service at all, the apex court said. "Why should the common man suffer all this," it said.

 

Solicitor General Tushar Mehta, appearing for the government, had sought time from the apex court to sit with the officers and then respond to the petition. "We will have to find a way out. Some way that balances equities," Mehta said. The apex court listed the case for hearing on Oct. 12, observing that it is more about the ethics of medical practitioners in dealing with their patients.

 

On Sept. 22, the apex court had observed that selling essential medicines to patients at inflated prices is daylight robbery. The top court noted that there are essential medicines for cancer, for which the maximum retail price is INR 27,000 and the price to the retailer is only INR 2,700. "If that is not extortion, what else is it?" the court said, adding that people are sometimes forced to sell their ornaments to secure the medicines.

 

"That is absolute rampage and carnage and broad daylight dacoity with the patients. How can a patient be cheated for a medicine which the manufacturer sells to the retailer at INR 2,700 and MRP (maximum retail price) is printed at INR 27,000?" a bench of Justice Vikarm Nath and Justice Sandeep Mehta had said. They expressed surprise over the "absolute silence" of the authorities supposed to take a decision on these matters. 

 

The inflated pricing structure results in systemic fraud on the public exchequer when medical expenses are reimbursed under state health schemes, the court said. "When patients are taking treatment under Ayushman Bharat scheme, this whole price has to be paid by the taxpayers. Hospitals are buying medicines at these prices and then reimbursing from the government. It's ultimately taxpayer's money. There is a clear-cut case of fraud," the top court said. 

 

The top court was hearing a petition by Kishan Chand Jain seeking mandatory generic drug prescriptions, strict initial price controls on non-scheduled medicines, and maximum retail price caps on medical devices. Under the Drug Price Control Order, 2013, the National Pharmaceutical Pricing Authority fixes ceiling prices for only 1,000 scheduled drugs, leaving nearly 82% of medicines in the market non-scheduled, said the petitioner.  End  

 

Reported by Surya Tripathi

Edited by Shubhayan Bhattacharya

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.