On Tuesday, 29 September 2026, a bench of Justices Vikram Nath and Sandeep Mehta expressed concern while hearing petitions related to drug pricing, generic prescriptions and regulation of medical devices under the Drugs (Prices Control) Order (DPCO), 2013.
The bench highlighted an example of an essential cancer drug supplied to retailers at around ₹2,700–₹3,000 but carrying a Maximum Retail Price (MRP) of ₹27,000.
“This is carnage. Plain and simple,” the court remarked.
It questioned why such large gaps were allowed and asked whether a uniform 16% margin (as provided under the DPCO for scheduled formulations) should apply to all medicines.
The judges noted that corporate hospitals often require patients to buy medicines only from their in-house or designated pharmacies, leaving little choice.
When treatment is covered under government schemes (such as Ayushman Bharat), the inflated cost is ultimately borne by taxpayers.
Solicitor General Tushar Mehta, appearing for the Centre, acknowledged the concerns and stated that a balanced approach would be needed. He submitted that private hospitals, rather than pharmaceutical companies, appeared to be the main beneficiaries of the high markups.
The bench has directed the Centre to examine the allegations concerning medicine pricing and the practice of designated hospital pharmacies. The matter is scheduled for further hearing on 12 October 2026.
The observations have drawn attention to the financial burden faced by cancer patients and the need for stronger regulation of drug pricing in private healthcare settings.