The Karnataka High Court has halted the state government’s directive to close down Jan Aushadhi Kendras operating inside government hospitals, granting a stay in favour of 18 petitioners challenging the decision. The order, delivered by Justice M. I. Arun, ensures the pharmacies may continue functioning pending further hearings.
The contest centres on a government order issued in May, which instructed the closure of these pharmacies on grounds that they conflicted with the state’s free medicine distribution policy in hospitals. The Health Department had rejected 31 pending applications and proposed the termination of approximately 200 existing outlets upon licence expiry.
Owners of the Kendras argue the order violated their right to livelihood under Article 19 and the right to life under Article 21 of the Constitution. They say they invested significant capital in infrastructure, licenses, staff and inventory based on legitimate expectations. Their affidavits highlight that Jan Aushadhi Kendras sell generic medicines at 50–90 per cent lower prices, improving affordability for low-income patients including chronic disease sufferers and senior citizens.
The state government defends its move by stating government hospitals already supply essential medicines for free via the Karnataka State Medical Supplies Corporation, sourced through the Bureau of Pharma PSUs of India. Health Minister Dinesh Gundu Rao was quoted emphasising that public funds are now supporting the procurement of cheaper generics directly for hospital use.
This legal stand-off has drawn sharp political criticism. BJP leaders including MP Tejasvi Surya and Union Minister Pralhad Joshi accused the state of undermining the Pradhan Mantri Bharatiya Janaushadhi Pariyojana, alleging it was politically motivated and detrimental to the poor. Surya, who represented the petitioners along with his legal team, described the court’s stay as a “big win for poor patients and their families”.
Union Minister Joshi further stated that Karnataka’s move stemmed from an aversion to the Prime Minister’s name and accused the state government of attempting to suppress a national scheme that has established over 9,000 Kendras nationwide under PMBJP. He highlighted that similar pharmacies have not faced closures elsewhere and warned of widespread fallout if the Karnataka government continued the policy.
State officials maintain that no immediate shutdown will affect existing Kendras. They plan to allow these outlets to operate until the licences expire while promoting internal hospital pharmacies as the new norm. Principal Secretary Harsh Gupta emphasised hospitals would be strengthened through direct procurement measures to ensure uninterrupted free medicine supply.
Analysts say the court’s decision underscores tensions between central and state policies on generic drug provision. The PMBJP aims to curb out-of-pocket healthcare costs through widespread access to affordable generics. In contrast, Karnataka’s approach prioritises consolidation of medicine supply within public hospital systems, avoiding external pharmacies that might generate revenue or divert patients.
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