Supreme Court of India· 17 March 2025

What competing consideration limits regulation of private hospitals under a right-to-health claim?

SIDDHARTH DALMIA & ANR. v. UNION OF INDIA & ORS.

2025 INSC 351 · WRIT PETITION (C) No. 337 of 2018
Coram: Surya Kant; Nongmeikapam Kotiswar Singh

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Answer

The risk of deterring investment in the health sector. A policy that regulates each and every activity within the compound of a private hospital may discourage persons from coming forward to invest in the health industry. Any measure must therefore safeguard patients and their attendants from exploitation while simultaneously ensuring there is no discouragement and unreasonable restriction on private entities entering the health sector.

Headnote

Constitution of India — Arts. 21, 32, 38, 39, 47 — List II (State List) — Public health — Private hospitals — Pricing of drugs — Policy decisions — Judicial restraint — Constitution of India — Art. 32 — Policy decisions — Scope for mandatory directions — Held: Issues of paramount public importance that primarily involve policy decisions are for the policy-makers, who are best equipped to take a holistic view and formulate the guidelines; mandatory directions that would hamper the growth of hospitals in the private sector are not advisable. (¶15, 17) Constitution of India — Art. 21, Part IV — Medical facilities — Right to life — Held further: Provision of medical facilities to one and all is an essential component of the right to life, and where the requisite medical infrastructure falls short of the population the States have themselves facilitated private entities and look to them. (¶13) Constitution of India — List II (State List) — Public health and hospitals — State competence — Held further: Public health and sanitation, hospitals and dispensaries fall in the State List, so regulation of this kind must come from the State Governments keeping their local conditions in mind; writ petition disposed of with a direction to consider the issue. (¶16, 18)

In the Court's own words

Paragraph 14In this backdrop, would it be prudent for the Union of India or the States to introduce a policy which regulates each and every activity within the compound of these private hospitals? Will such a policy discourage persons to come forward and invest in the health industry throughout the country? Most importantly, why should the States not adopt such economic policies whereunder they ensure dedicated apportionments towards the development of basic infrastructure, including institutions for health services; and till such time the States are able to do so, whether stringent measures which would stall private entities from coming forward, should be allowed to be introduced?

Paragraph 15All these issues are undoubtedly of paramount public importance. It, however, seems to us that such issues primarily involve policy decisions, for which the policy-makers are the best equipped to take a holistic view and formulate the guidelines as may be required, to safeguard the patients or their attendants from exploitation while simultaneously, ensuring that there is no discouragement and unreasonable restriction on private entities from entering the health sector.

Acts & Sections

Art.32 Constitution of IndiaArt.21 Constitution of IndiaArts.38, 39 and 47 Constitution of IndiaDrugs and Cosmetics Act, 1940Essential Commodities Act, 1955

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Also decided in this judgment

When a petition under Article 32 of the Constitution raises an issue of public importance that turns on policy, will the Supreme Court issue mandatory directions?Is the provision of medical facilities part of the right to life under Article 21 of the Constitution?Under the Constitution of India, which government is competent to regulate the pricing practices of private hospitals?

Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Supreme Court of India. Corrections