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Winding downCourts & Law· Updated 28 Oct, 19:31 ISTBefore the courts

Supreme Court questions medicine pricing, calls margins 'loot', reserves order

Latest: Bench calls hospital drug margins 'loot' and 'dacoity' as it reserves order on medicine pricing petitions

A Supreme Court bench of Justices Vikram Nath and Sandeep Mehta heard petitions on medicine pricing on Tuesday and reserved its order. It asked why the system seemed to favour manufacturers, called the National Pharmaceutical Pricing Authority 'totally defunct', and described excessive hospital margins as 'loot' and 'dacoity', citing a chemotherapy injection billed at Rs 1.30 lakh against a dealer price of Rs 11,000.

The Centre defended selective intervention, a 30 per cent cap on cancer drug trade margins and its claim that Indian prices are among the world's lowest, and said higher margins help medicines reach far-flung areas. Private hospitals argued they need their own pharmacies, and one petition seeks mandatory generic prescriptions and statutory margin caps. Summary updated 28 Oct, 19:31 IST

Why it matters: Medicine costs make up a significant share of treatment spending for Indian families, so any ruling on pricing and margins could affect what patients pay.

Updates

New developments are added here, newest first. When the headline, summary or other sections change, the earlier version is kept under “See earlier version”.

  1. 28 Oct, 19:31 ISTTwo more outlets reported the Supreme Court hearing, adding that the bench called hospitals' excessive margins 'loot' and 'dacoity', that the Centre said higher margins help medicines reach far-flung areas and that its pricing policy is 'constantly calibrating', and that the order was reserved on a PIL by advocate Kishan Chand Jain seeking mandatory generic prescriptions and statutory margin caps (articles 7, 8).
  2. 28 Oct, 16:37 ISTThe Supreme Court bench of Justices Vikram Nath and Sandeep Mehta asked on Tuesday why most medicines sit outside the price control regime, and reserved its order. Additional Solicitor General Aishwarya Bhati defended the policy of selective intervention over full price control, and Justice Mehta rejected her argument that Indian medicine prices are among the world's lowest (article 6).
  3. 28 Oct, 14:30 ISTOn Tuesday (27 October) the Supreme Court bench of Justices Vikram Nath and Sandeep Mehta reportedly asked why the Centre waited so long to cap cancer drug trade margins, citing a chemotherapy injection billed at Rs 1.30 lakh against a dealer price of Rs 11,000. It said the government was allowing overpricing and reserved its order, while Rohatgi argued that private hospitals need their own pharmacies (articles 4, 5).
  4. 28 OctFirst published with 3 articles.
See earlier version

Headline before this update: Supreme Court questions medicine price control gaps, reserves order

Summary before this update: A Supreme Court bench of Justices Vikram Nath and Sandeep Mehta heard petitions on medicine pricing on Tuesday. It questioned the gap between MRP and retailer prices, asked why most medicines are kept out of price control and why the Centre took so long to cap cancer drug margins, citing a chemotherapy injection billed at Rs 1.30 lakh against a dealer price of Rs 11,000. It called the National Pharmaceutical Pricing Authority 'totally defunct' and reserved its order. The Centre defended its policy of selective intervention and its 30 per cent cap on cancer drug trade margins, and private hospitals argued they need their own pharmacies.

Note before this update: All six outlets are critical of the Centre's handling and stress the court's sharp questions, but they differ in emphasis: the Centre's defence, price gaps, hospital arguments, the delay in the cap and the scope of price control.

“What's missing” before this update:

  • No ruling yet: the order is reserved, so it is not known what directions the court may issue on margins, price control or the pricing authority.
  • No official data on price gaps: the articles give no figures on how widely MRP exceeds retailer prices across drugs beyond the court's examples.
  • Limited reach of the cap: the cap covers anti-cancer drugs only, and the articles do not say whether it will extend to other medicines.
  • Centre's answer on the delay: the articles do not report why the cap on cancer drug margins took so long.

Based on 8 articles read in full. Scores describe each article's framing, not the outlet and not whether it is accurate.

Large outlets read: 4 of 15 (Hindustan Times, Aaj Tak, Times Now, Dainik Bhaskar).

What's missing: The order is reserved, so it is unclear what the court will direct on drug margins, generic prescriptions, price control and the pricing authority.

What everyone agrees on

  • A bench of Justices Vikram Nath and Sandeep Mehta heard the matter and questioned the gap between drug MRP and retailer prices. 1 2 3 4 5 6 7 8
  • The court was sharply critical of the National Pharmaceutical Pricing Authority, calling it 'totally defunct' or inactive, and asked why prices are not curbed. 1 3 5 7 8
  • The Centre said it has capped the trade margin on anti-cancer drugs at 30 per cent of MRP, expected to save about Rs 2,500 crore a year. 1 2 3 4 5 7
  • The court reserved its order after hearing the petitions. 1 3 4 5 6 7 8

How the coverage differs

All eight outlets are critical of the Centre's handling and stress the court's sharp questions, but they differ in emphasis: the Centre's defence, price gaps, hospital arguments, the delay in the cap and the scope of price control.

  • Court's sharp questions: the bench asked why the entire system seemed to work for manufacturers, said the government was allowing overpricing and called the pricing authority 'totally defunct'. 1 3 5 7 8
  • Price gaps and hospitals: the court asked why a Rs 100 MRP drug sells to retailers for Rs 10-20, said hospital costs cannot justify prices 100 or 200 times the cost and used the words 'loot' and 'dacoity'. Senior advocate Mukul Rohatgi, for private hospitals, said hospitals need their own pharmacies. 2 4 7 8
  • Scope of price control: the court asked why most medicines are outside the regime. Under DPCO 2013, scheduled medicines have ceiling prices, while non-scheduled ones have free initial MRPs with a 10% annual increase cap. 6
  • Centre's defence: Additional Solicitor General Aishwarya Bhati said the policy balances affordability with innovation and jobs, prefers selective intervention, is 'constantly calibrating', and that Indian prices are among the world's lowest. Justice Mehta rejected that line. The government also said higher margins help medicines reach far-flung areas. 1 5 6 7 8
  • Delay and patient burden: the court asked why the Centre waited so long to cap cancer drug margins. Medicines account for about 17% of treatment costs in India. 3 4

Where they disagree

No real disagreement between sides in this coverage.

What's missing

  • No ruling yet: the order is reserved, so it is not known what directions the court may issue on margins, price control, generic prescriptions or the pricing authority. 1 3 4 5 6 7 8
  • No official data on price gaps: the articles give no figures on how widely MRP exceeds retailer prices across drugs beyond the court's examples. 2 4 6 7
  • Limited reach of the cap: the cap covers anti-cancer drugs only, and the articles do not say whether it will extend to other medicines. 1 2 3 4 5 7
  • Centre's answer on the delay: the articles do not report why the cap on cancer drug margins took so long. 4

The articles

Left-leaning
2 · Aaj Tak · HindiConfidence: Medium
'दवाओं की कीमत 200 गुना ज्यादा, मरीजों से लूट क्यों?', SC ने केंद्र से पूछा
This article:

Why: Backs price regulation and patient protection against private hospital profiteering, a state-led welfare angle; the Union government is shown as unable to answer the court's questions. Mostly court-reporting.

3 · Dainik Bhaskar · HindiConfidence: Medium
सुप्रीम कोर्ट बोला-पूरा सिस्टम दवा निर्माताओं की मदद कर रहा:MRP और रिटेलर कीमतों में अंतर; भारत में इलाज का 17% खर्च दवाओं पर
This article:

Why: Stresses state regulation of drug prices and price caps to protect patients from manufacturer profiteering; welfare and state-led framing leans left, though mostly court-reported and moderate.

4 · The StatesmanConfidence: Medium
SC slams centre over delay in capping cancer drug margins, hits out at private hospitals for ‘dacoity’
Added 28 Oct, 14:16 IST
This article:

Why: Court's rebuke of delayed price caps and private hospital profiteering favours state regulation and patient protection; welfare-leaning on statism, with few religion or identity signals. Mild lean left.

5 · Hindustan TimesConfidence: Medium
'Govt allowing this to happen': Supreme Court questions overpricing of medicines, massive gap in MRP and cost to retailers
Added 28 Oct, 14:16 IST
This article:

Why: Centre's light-touch pricing policy is shown failing consumers; court's pro-regulation, consumer-protection stance dominates. Touches statism (welfare/regulation vs market), so mild left lean; no religion or caste content.

6 · LiveLawConfidence: High
Why Most Medicines Kept Out Of Price Control Regime? Supreme Court Questions Centre, Reserves Order
Added 28 Oct, 16:23 IST
This article:

Why: Court-hearing report foregrounds judges' sharp criticism of the Centre's market-led drug pricing and 'loot' remarks; welfare-over-market framing and the headline lean left, with little government voice beyond the ASG's defence.

7 · The TribuneConfidence: Medium
Loot, dacoity: Supreme Court asks why entire system working to help drug firms
Added 28 Oct, 18:42 IST
This article:

Why: Backs state price control over pharma margins and frames market pricing as 'loot' hurting patients. Touches statism only, leaning welfare and regulation. Critical of the Centre through the court's remarks.

8 · Times NowConfidence: Medium
‘Why Is System Helping Manufacturers?’ SC Slams Centre, Calls Hospitals' Excessive Margins 'Loot’, ‘Dacoity’ Oct 28, 2026, 08:25 IST
Added 28 Oct, 18:42 IST
This article:

Why: Backs price caps and state regulation of drug and hospital margins, with sharp criticism of 'capitalistic thinking'. Welfare and statism lean left; the Centre's side gets one line.

Centre
1 · Hindustan TimesConfidence: Medium
Why entire system working to help pharmaceutical manufacturers, asks SC
This article:

Why: Court's sharp questions on drug pricing lean towards state regulation and patient welfare over industry, a mild statist-left signal; Centre's reply is included, so the score stays near centre.

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