Cancer Drugs Sold to Retailers at INR 2,700 but MRP INR 27,000: Supreme Court Calls It Daylight Robbery
The Supreme Court called the 10-fold markup on cancer drugs 'broad day light dacoity,' noting essential medicines sold to retailers at INR 2,700 carry an MRP of INR 27,000. Slamming the silence of regulatory authorities, Justice Sandeep Mehta flagged a clear-cut case of fraud where hospitals buy at low PTR and claim inflated reimbursements under state schemes.
The Supreme Court has issued strong observations regarding the massive pricing discrepancy in life-saving oncology medicines, characterising the inflated maximum retail prices (MRP) of cancer drugs as an outright looting of vulnerable patients and daylight robbery. The bench pointed out that several essential cancer drugs are supplied to retailers at a Price to Retailer (PTR) of just INR 2,700, yet carry an exorbitant printed MRP of INR 27,000, creating an artificially inflated markup that exploits patients and drains public healthcare funds.
Expressing deep dismay over the regulatory inaction surrounding pharmaceutical pricing margins, the top court noted that it was shocking how statutory authorities tasked with checking pricing abuse have maintained complete silence on the issue. AIIMS Delhi Doctors Remove Massive 19.9 Kg Tumour From 43-Year-Old Colon Cancer Patient from West Bengal; Know How the Surgery Was Planned.
Supreme Court Calls Cancer Drugs Price Exploitation 'Daylight Robbery'
Court: when patients are taking treatment under AYUSH scheme, this whole price has to be paid by the tax payers. Hospitals are buying medicines at these prices and then reimbursing from the government. It’s ultimately tax payer’s money. There is a clear cut case of fraud.
— Bar and Bench (@barandbench) September 22, 2026
Bench Flags Rampant Exploitation and Regulatory Silence
During the proceedings, Supreme Court Justice Sandeep Mehta observed that it was incomprehensible why patients should be forced to bear such astronomical expenses for critical treatments when the base acquisition price is a fraction of the cost.
Condemning the practice on record, the Supreme Court stated: “There are essential medicines for cancer for which MRP is INR 27000 and PTR (price to retailer) is INR 2700. That’s absolute rampage and carnage and broad day light dacoity with the patients. How can a patient be cheated for a medicine which the manufacturer sells to the retailer at INR 2700 and MRP is printed at INR 27000? It is surprising that the authorities who are supposed to take a decision on this are absolutely silent. We need not spell out the reasons for that.” BBC News Presenter Maryam Moshiri Reveals She Has Incurable Blood Cancer.
The bench emphasised that drug manufacturers and supply chains are allowed to pocket disproportionate profit margins while regulatory bodies look the other way, leaving families battling critical illnesses under severe financial distress.
Taxpayer Funds Drained Through Government Schemes
The top court also highlighted how the steep gap between trade prices and retail labels directly impacts public exchequer funds under government-backed welfare and health insurance programmes.
Underlining the systemic fraud, the Court observed: “When patients are taking treatment under AYUSH scheme, this whole price has to be paid by the tax payers. Hospitals are buying medicines at these prices and then reimbursing from the government. It’s ultimately tax payer’s money. There is a clear cut case of fraud.”
By purchasing drugs at low wholesale rates while claiming reimbursements at the inflated maximum retail rate, private hospitals and distributors extract massive subsidies from taxpayer-funded healthcare schemes. The court indicated that urgent regulatory intervention is needed to cap margins on life-saving medicines and prevent widespread financial fraud across both private and government-assisted medical care.
(The above story first appeared on LatestLY on Sep 22, 2026 04:34 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).