State tells Karnataka High Court it will hold its hands on medicine price circular

The Karnataka government on Friday informed the Karnataka High Court that it will hold off on implementing a circular mandating that hospitals disclose the procurement prices of medicines in patient bills.

The submission was made during the hearing a petition challenging the October 1 circular.

The circular directed hospitals and healthcare institutions to disclose the base procurement prices of medicines, medical devices etc. in bills given to patients, alongside the final price charged, from November 1 onwards.

Justice CM Poonacha today recorded the State's submission that this circular will not be enforced until the plea challenging its validity is heard next.

The Court also took note of a submission by the State's Additional Advocate General (AAG) BV Bhanuprakash that the concerned officials were reconsidering the circular.

“The Additional Advocate General appearing on behalf of the respondents would submit, on instructions, that the concerned officials are in the process of having a relook at the impugned circular dated 01.10.2026 and the implementation of the impugned circular dated 01.10.2026 will not be insisted upon till the next date of hearing,” the order stated.

During today's hearing, AAG Bhanuprakash sought some time to examine the matter. He urged the Court not to pass an interim order staying the circular, stating that he would consult the concerned officials and return with instructions.

“My only request is not to pass any order. We will come back. The background in which we have passed this is only for them to indicate what is the landing or base price,” he submitted.

The Bench, however, pointed out that the petitioners had expressed apprehensions that any failure to comply with the circular from November 1 could be treated as a default.

“If you are not strictly enforcing it for a few days, then something has to come on record for their apprehension,” the Court told the State's counsel.

The State's counsel, in turn, assured that the circular will not be enforced until the matter is heard next.

The Court was hearing a petition been filed by the Private Hospitals and Nursing Homes Association, Pristine Hospitals and Research Centre Private Limited and a doctor, Dr Halagere Mallikarjuna Prasanna. The petitioners have challenged an October 1 circular issued by the Commissioner of Food Safety and Drug Administration, Karnataka.

The circular directed hospitals and healthcare institutions to disclose the actual procurement or landing price, maximum retail price (MRP) and the price charged to patients for medicines, medical devices and consumables in itemised bills from November 1.

They have contended that the circular was issued without statutory authority and imposes a disclosure obligation that is not contemplated under the existing legal framework.

The plea also argues that procurement prices vary depending on suppliers, purchase quantities, discounts, rebates, credit arrangements and other commercial terms. Compulsory disclosure of such information could expose confidential commercial arrangements and cause confusion among patients when procurement prices differ across establishments, the plea states.

The petitioners further raised concerns about the short implementation period, stating that compliance would require changes to billing software, accounting systems, procurement records and administrative workflows across healthcare establishments.

Moreover, they have alleged that the circular was issued without adequate consultation with hospitals, nursing homes, pharmacies or other stakeholders, despite the operational and financial implications of the proposed requirements.

Senior Advocate Dhyan Chinnappa appeared for the petitioners.

The matter has been posted next on November 12, when the Court may examine the question of whether any interim relief should be granted.