Hospitals Not Paid Despite Release of Funds Under Ayushman Bharat: HC Attaches Salary of State Health Secretary among Others

Chandigarh: While considering the pleas filed by several hospitals in Punjab seeking the release of pending dues from the State Government under the Ayushman Bharat Scheme, the Punjab and Haryana High Court till October 16, attached the salaries of senior officials, including the Principal Secretary of the Health Department of the State, for failing to release the pending dues.

"Let an affidavit be filed by the State Government of Punjab giving the details of the payments that have been made against bills since 30.12.2021 to 24.09.2024 alongwith the date on which such payment was released, within a period of two weeks from today. The salaries of Kumar Rahul, IAS, Principal Secretary, Department of Health, Ms. Babita, Chief Executive Officer, Mr. Deepak, Director and Ms. Sharanjit Kaur, Deputy Director, State Health Agency, Department of Health and Family Welfare, Punjab shall remain attached till the next date of hearing," ordered the HC bench.

"This Court also tentatively records that there is no satisfactory explanation put forth before this Court as to why despite the funds having been received from the Government of India, the payments have not been released in favour of the petitioners-hospitals and as to under what circumstances, the State Government could have withheld the said amount once it had been received from the Government of India against verified bills and for further remittance to the empanelled hospitals," noted Justice Vinod Bhardwaj.

It was observed by the Court that ordinarily, any such action would have called for stern orders against the erring officials who misdirected the funds and diverted it for unauthorized use.

However, the HC bench further added that before suggesting any action, "it is deemed expedient to seek a detailed response from the State about the financial reimbursement received by the State of Punjab from the Union of India from December 2021 uptill now and how that money has been utilized."

"the State, having received money for any specified purpose, is a custodian of said money only to release it to the actual beneficiaries and certainly cannot be permitted to retain the amount leaving the citizens litigating for their dues and misappropriate the said grants at the costs of the actual recipient," highlighted Justice Bhardwaj.

Filing the pleas, the Punjab-based hospitals contended that bills worth more than Rs 500 crores are pending with the State, which has also acknowledged the liability for the same. Despite this, the State released only an amount of Rs 26 crores approximately.

On the other hand, the Counsel for the Union Government, ASG Satya Pal submitted that as per the Ayushman Bharat Scheme, 60% of the medical bills are to be reimbursed by the Central Government and up to the financial year 2023-2024, an amount of Rs 355.,48 crores have already been released by the Central Government. Therefore, it was contended that the State Government- particularly, the State Health agencies including had the obligation to disburse the amount including their own component of the dues to the extent of 40%.

He further submitted that the State has not only released its own share of 40%, but it has also misutilized the share already released by the Central Government.

While considering the matter, the HC bench noted that the State Government could not offer any explanation as to why the undisputed payment of Rs 500 crores in question has not been released to the hospitals.

At this outset, the bench noted,

"What is surprising is that even though a sum of more than Rs.350 crores has been claimed to be released by the Union of India, however, even the said amount, which has been received by State of Punjab/State Health Agency from Union of India, has not been disbursed and they have unlawfully retained the amount."

Therefore, the Court asked the State Government to file an affidavit stating whether the amount received from the Central Government under the Ayushman Bharat Payments could be used for the said purposes or not.

Further, the bench directed the Principal Secretary of Finance to file an affidavit detailing the expenses incurred by the State on other issues such as advertisements, renovation of Government houses etc. between December 2021 and September 2024.

The Affidavit has to mention the following issues:

(i) The expenses incurred for publishing advertisement in print and audio-video media including break-up about the States and languages where such advertisements have been published/played.

(ii) The expenses incurred on renovation of the houses/offices of Class-I officers as well as Ministers/MLAs in Punjab.

(iii) Expenses incurred in purchase of new vehicles alongwith their make for the Ministers/MLAs and Class-I officers in the State of Punjab.

(iv) The litigation expenses paid for pursuing matters before the Hon’ble Supreme Court of India or Delhi High Court in defending/pursuing matters for the State of Punjab or for any other person or agency and instrumentality of State of Punjab or outside.

(v) The expenditure incurred in various social welfare schemes such as free electricity, Atta Dal Scheme etc. as against the budgetary allocation for the same period.

Adjourning the matter to October 16, 2024, the HC bench noted, "The aforesaid information is being sought currently for examining as to whether the funds/grants received for any specific purpose are being misapplied or misutilized or not. The State, having received money for any specified purpose, is a custodian of said money only to release it to the actual beneficiaries and certainly cannot be permitted to retain the amount leaving the citizens litigating for their dues and misappropriate the said grants at the costs of the actual recipient."

To view the order, click on the link below:

https://medicaldialogues.in/pdf_upload/punjab-and-haryana-hc-254643.pdf

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