Supreme Court moves to tighten rules on pharma freebies to doctors

NEW DELHI/MUMBAI: The Supreme Court on Thursday directed the Centre to set up a three-member committee to examine how pharmaceutical companies market medicines to doctors, and recommend whether the industry needs a statutory framework to regulate such practices.

The move could pave the way for legally enforceable rules governing freebies, gifts and other benefits offered to doctors by drugmakers, an issue that has long been governed primarily by industry codes.

“The committee will consider the suggestions and representations and give its recommendations to the Union. The matter is directed to be listed on 29 January for consideration of compliance affidavit by the Union,” the top court said.

A bench of Justice Vikram Nath and Justice Sandeep Mehta issued the direction in a long-running petition seeking regulation of pharmaceutical marketing practices. The petition argues that incentives offered to doctors to promote medicines can influence prescribing decisions, potentially leading to unnecessary or irrational prescriptions and higher costs for patients.

The court will next hear the matter on 29 January, when it is expected to consider the Centre’s compliance affidavit on the formation of the committee.

The direction follows the court’s 8 September proceedings, when it reserved its order after Solicitor General Tushar Mehta told the bench that the Centre would constitute a three-member committee to examine whether a statutory framework was required to regulate unethical practices by pharmaceutical companies.

The committee is now expected to examine the existing framework, consider suggestions and representations from stakeholders and recommend to the Union government what changes may be required.

Code without teeth?

The petitioners have argued that the existing Uniform Code for Pharmaceutical Marketing Practices (UCPMP) lacks an adequate statutory enforcement mechanism. They are seeking a legally enforceable framework to regulate pharmaceutical companies, monitor promotional practices and hold companies accountable for offering incentives to doctors.

The latest development comes against the backdrop of the government’s introduction of the Uniform Code for Pharmaceutical Marketing Practices, 2024. The code was intended to regulate promotional practices by pharmaceutical companies and set standards governing their interactions with healthcare professionals.

The Supreme Court subsequently questioned whether the existing framework had sufficient teeth and whether it required statutory backing.

During proceedings in November 2025, the court examined whether the pharmaceutical marketing code should be given greater legal force. The apex court also questioned the effectiveness of the existing mechanism and the extent of government control over the industry’s internal ethics framework.

The case centres on a broader question for the pharmaceutical industry and the medical profession: how far can drug companies go in promoting their products to doctors, and what safeguards are needed to ensure commercial incentives do not influence medical decisions?

For pharmaceutical companies, stronger statutory regulation could mean greater scrutiny of their interactions with doctors and tighter controls on promotional expenditure and incentives. For doctors, it could provide clearer rules on what benefits they can accept from drug companies.

Cases under scrutiny

The issue has previously drawn regulatory and legal scrutiny.

In 2024, a government probe found that AbbVie Healthcare India Pvt. Ltd, the India arm of the American pharma giant, had spent approximately ₹1.91 crore to sponsor luxury foreign trips to Monaco and Paris for 30 doctors. This invited disciplinary action by a Department of Pharmaceuticals committee, which reprimanded AbbVie Healthcare and asked the Central Board of Direct Taxes (CBDT) to evaluate the tax liabilities and also asked the National Medical Commission to take action against the doctors involved.

However, in August 2026, the Delhi High Court stayed disciplinary proceedings against the healthcare professionals based on their plea, noting that the action stemmed from an anonymous complaint.

In 2022, the CBDT informed the Supreme Court that Micro Labs Ltd, which makes the Dolo-650 tablet, had distributed freebies worth ₹1,000 crore to doctors to market the drug.