Surrogacy Scandals and Legal Loopholes in India

Surrogacy scandals and legal loopholes in India have exposed critical deficiencies in regulatory oversight, prompting judicial scrutiny and legislative reforms under the Surrogacy (Regulation) Act, 2021, to curb exploitation and ensure ethical compliance.

The shocking revelations from Hyderabad’s “Baby Bazaar” scandal have reignited debates over India’s surrogacy laws. What was meant to protect vulnerable women and children has instead given rise to underground markets, forged documents, and systemic exploitation. The scandal exposes not just the failure of one fertility clinic, but the deep flaws in India’s Surrogacy (Regulation) Act, 2021, and its enforcement.

The Scandal Unfolds

• At the center of the controversy is the Universal Srushti Fertility Centre, run by Dr. Namratha, already a repeat offender in past surrogacy violations.
• Police investigations revealed that babies were purchased from poor families for as little as ₹90,000 and sold to intended parents for up to ₹35 lakh under the false guise of legitimate surrogacy.
• A DNA mismatch exposed the fraud: the children sold had no genetic link to the commissioning parents.
• Over 50 client files were seized, revealing forged medical records, fabricated delivery reports, and manipulated contracts.
• Telangana’s government has since ordered statewide inspections of fertility clinics, uncovering widespread irregularities—nearly half of all centers were non-compliant with regulatory standards.

The Legal Landscape: Surrogacy in India

The Surrogacy (Regulation) Act, 2021

• Commercial surrogacy is banned; only altruistic surrogacy is allowed.
• Surrogates must be close relatives of intended parents and can act as surrogates only once.
• Only Indian heterosexual married couples married for 5+ years qualify.
• Single parents, LGBTQ+ couples, foreigners, and live-in partners are excluded.

Legal Loopholes

• The ban on commercial surrogacy has pushed demand into black markets, making vulnerable women targets for exploitation.
• Vague terms like “close relative” and “medical expenses” allow hidden financial transactions under the guise of legality.
• Oversight bodies created under the Act lack resources, leading to weak enforcement and unchecked malpractice.

Ethical and Constitutional Dilemmas

• Forcing surrogates into an “altruistic-only” model ignores the labour, risks, and health costs of pregnancy.
• Excluding groups like LGBTQ+ families and single parents conflicts with Article 14 (equality) and Article 21 (reproductive autonomy) of India’s Constitution.
• Instead of curbing exploitation, over-regulation has driven the industry underground, leaving women and children unprotected.
• International human rights bodies, including UNICEF, caution that extreme bans can backfire by encouraging child trafficking disguised as surrogacy.

The Way Forward

To prevent another “Baby Bazaar”, India needs balanced reform:

• Amend vague provisions: Clarify terms like close relative and medical expenses.
• Strengthen watchdog bodies: Empower National and State Surrogacy Boards with real authority and resources.
• Expand eligibility: Allow single parents, LGBTQ+ couples, and foreigners under regulated frameworks.
• Permit fair compensation: Recognize surrogacy as labour, with safeguards against exploitation.
• Involve surrogates in policymaking: Laws must reflect the lived realities of women carrying these pregnancies.

More than just a tale of corruption, the Hyderabad “Baby Bazaar” incident offers a window into the unforeseen repercussions of badly draughted legislation. Underground markets will continue to flourish in India unless a framework for surrogacy is established that is inclusive, transparent, and based on rights, endanger vulnerable women and children.

Frequently Asked Questions on Surrogacy Scandals and Legal Loopholes in India

1. What was the “Baby Bazaar” in Hyderabad?

The term “Baby Bazaar” refers to a recent surrogacy scandal in Hyderabad, where women were allegedly exploited and babies were sold illegally through unregulated surrogacy networks, highlighting the misuse of loopholes in India’s surrogacy laws.

2. Is surrogacy legal in India?

Yes, surrogacy is legal in India but heavily regulated under the Surrogacy (Regulation) Act, 2021. Only altruistic surrogacy is permitted, meaning a surrogate can carry a child without financial gain, except for medical expenses and insurance coverage.

3. What type of surrogacy is banned in India?

Commercial surrogacy—where women are paid to carry a pregnancy for intended parents—is banned. This was introduced to prevent the exploitation of economically vulnerable women.

4 Who is eligible to pursue surrogacy in India?

Only Indian married couples (heterosexual) who have been married for at least five years, and who meet medical criteria for infertility, are eligible. Single parents, LGBTQ+ couples, and foreigners are excluded under the current law.

5. What loopholes exist in India’s surrogacy regulations?

Despite the ban on commercial surrogacy, reports show that illegal networks still operate, offering surrogate services for profit. Weak enforcement, lack of proper monitoring, and the desperation of childless couples make these practices possible.

6. How are surrogate mothers exploited in these scandals?

Many surrogates, often from poor and marginalized backgrounds, are misled about legal protections, underpaid, or denied medical and emotional support. Some cases reveal women being coerced into multiple pregnancies without proper care.

7. What penalties exist for violating surrogacy laws in India?

Violating the Surrogacy (Regulation) Act can result in fines up to ₹10 lakh (approx. $12,000) and imprisonment of up to 10 years, depending on the severity of the offense.

8. What reforms are being suggested to prevent such scandals?

Legal experts suggest stricter monitoring of fertility clinics, stronger enforcement of penalties, better education for women about their rights, and possibly rethinking the restrictive laws that unintentionally drive people toward black-market options.

9. How does this scandal affect India’s global reputation in surrogacy?

India was once a hub for international surrogacy. The scandal highlights ongoing ethical and legal concerns, raising questions about whether India can balance compassion for infertile couples with protection for vulnerable women.

10. What should intended parents do to avoid legal trouble?

Couples should only approach registered surrogacy clinics, ensure full compliance with the 2021 Act, and seek legal counsel before entering any surrogacy arrangement. Engaging in illegal surrogacy exposes them to criminal liability.