Will not enforce circular on hospital medicine price disclosure for now: Karnataka government to HC

It was contended on behalf of the petitioners that the FSDA had no statutory power to impose such conditions for disclosure of purchase price. | Image for representational purposes only

The State government on Friday (October 30) told the Karnataka High Court that it would not insist, for now, on the implementation of the circular which mandates that all hospital pharmacies disclose the landing base/purchase price and maximum retail price (MRP) of medicines, medical devices and consumables on bills.

An undertaking in this regard was given to the court on behalf of the State’s Food Safety and Drug Administration (FSDA) during the hearing of a petition filed by Private Hospitals and Nursing Homes Association, Bengaluru, and a private hospital. The petitioners have challenged the legality of the October 1 circular.

Justice C.M. Pooncha, before whom the petition came up for hearing, has adjourned further hearing on the petition till November 11 after recording the undertaking given by an Additional Advocate General on instruction from the officials of the FSDA.

The government also informed the court that “the officials concerned are in the process of having a re-look at the circular dated October 1, 2026, and will not enforce the mandate of the circular till November 11, the next date of hearing on the petition”.

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

It was contended on behalf of the petitioners that the FSDAhad no statutory power to impose such conditions for disclosure of purchase price, which is a commercial agreement between the sellers and buyers that vary depending on suppliers, purchase quantity, discounts, credit arrangements and other factors.

Mandating disclosure of purchase price would result in exposing confidential commercial arrangements between the suppliers and health establishments, it has been contented in the petition, while pointing out that the circular was issued sans adequate consultations with the stakeholders, even though the circular has direct implications on their finance.