Will not enforce hospital drug price disclosure circular for now: Karnataka HC

It was contended on behalf of the petitioners that the FSDA has no statutory power to impose such conditions for publication of the purchase price. | Image for representational purposes only | Photo credit: JK1991

The state government on Friday (October 30) told the Karnataka High Court that it will not for now insist on the implementation of a circular mandating that all hospital pharmacies publish the entry/purchase price and maximum retail price (MRP) of drugs, medical devices and consumables on bills.

The court took an undertaking in this regard on behalf of the State Food and Drug Safety Authority (FSDA) while hearing a petition filed by the Bengaluru Private Hospitals and Nursing Homes Association and a private hospital. The petitioners challenged the legality of the October 1 circular.

Justice CM Pooncha, before whom the petition came up for hearing, adjourned further hearing of the petition till November 12 after recording the undertaking given by the Additional Advocate General on the direction of the FSDA officials.

Look again

The government also informed the court that “the officials concerned are in the process of revisiting the circular dated October 1, 2026 and will not enforce the mandate of the circular till November 12, the next date of hearing of the petition”.

The undertaking was given while requesting the court not to delay the circular to allow the government to re-examine the issues raised by the petitioners.

It was argued on behalf of the petitioners that the FSDA has no statutory authority to impose such conditions on the publication of the purchase price, which is a commercial agreement between sellers and buyers that varies depending on suppliers, purchase quantities, discounts, credit arrangements and other factors.

No consultation

Mandating the disclosure of the purchase price would expose confidential business arrangements between suppliers and healthcare facilities, the petition contended, while also pointing out that the circular was issued without adequate consultation with stakeholders despite the circular having direct implications for their finances.

Published – 30 Oct 2026 20:52 IST