Supreme Court Asks Centre to Form Committee on Pharma Companies' Freebies to Doctors
New Delhi, 8 October 2026: The Supreme Court of India has asked the Union government to form a committee to recommend regulations on pharmaceutical marketing practices, including freebies and benefits given to doctors by drug companies, according to LiveLaw's daily round-up of Supreme Court proceedings.
What the issue is about
Pharmaceutical companies market medicines to doctors through sales representatives, sponsored conferences, travel, gifts and other benefits. Critics argue such practices can:
- Influence what doctors prescribe
- Encourage unnecessary or more expensive medicines
- Raise healthcare costs for patients
The current rules
- The National Medical Commission (NMC) professional conduct rules bar doctors from accepting gifts, travel and hospitality from pharma companies.
- The Uniform Code for Pharmaceutical Marketing Practices (UCPMP), issued by the Department of Pharmaceuticals and revised in 2024, sets rules for companies.
- Petitioners and health activists have argued that the UCPMP is voluntary and not enforceable by law, and have sought a binding legal framework.
Income-tax law also does not allow companies to claim freebies to doctors as business expenses, a position the Supreme Court upheld in 2022.
Why it matters
India is one of the world's largest pharmaceutical markets, and out-of-pocket health spending is a major burden for many families. Stronger rules could:
- Improve trust between patients and doctors
- Encourage rational prescribing, including generics
- Bring India closer to international practices such as sunshine laws that require disclosure of payments to doctors
What happens next
The government is expected to respond on forming the committee and its terms of reference. Any recommendations could lead to a statutory code with penalties, replacing or strengthening the voluntary system.
This article is for general information and is not legal advice. Details are based on reported court proceedings; the full order should be consulted for precise directions.
Sources
- LiveLaw, "Supreme Court Daily Round-Up: October 8, 2026": https://www.livelaw.in/round-ups/supreme-court-daily-round-up-october-8-2026-553785
- Department of Pharmaceuticals, UCPMP 2024: https://pharmaceuticals.gov.in/