Karnataka HC directs BBMP, Govt to Pay Rs 10.41 Crore COVID Dues

Bengaluru: The Karnataka High Court has directed the State government and the Bruhat Bengaluru Mahanagara Palike (BBMP) to clear pending dues amounting to ₹10.41 crore to two private medical establishments for COVID-19 testing services provided between 2020 and 2022.  

This directive came in response to two individual petitions filed by BGS Global Institute of Medical Sciences, Kengeri, and Vijayalakshmi Diagnostics Pvt. Ltd. (VDPL), Nagarbhavi. BGS had sought the release of ₹4.53 crore, while VDPL had claimed ₹5.88 crore.

Justice S.R. Krishna Kumar, while hearing the petitions, directed the civic body to release the pending dues along with 6% annual interest from the respective due dates until the actual date of payment.

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The court directed payment of Rs 5,88,91,359 with 6 per cent interest per annum from November 11, 2022, till the date of payment in favour of Vijayalakshmi Diagnostics Private Limited, Bengaluru; and payment of Rs 4,53,50,711 with 6 per cent interest per annum from October 17, 2022, till the date of payment to BGS Global Institute of Medical Sciences, Bengaluru, reports Deccan Herald.

The petitioners argued that during the height of the COVID-19 pandemic (2020–2022), they had provided RT-PCR testing services round-the-clock, incurring significant costs on the procurement of kits, chemicals, lab consumables, and human resources.

Both petitioners highlighted that although the authorities have acknowledged the dues, they have cited an ongoing inquiry by a One-Man Commission investigating irregularities during the COVID-19 pandemic (2020–2023) as the reason for withholding the remaining payments. The petitioners also noted that these payments have been pending since 2022.

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According to the Hindu, the BBMP had told the court that it had sought permission from the commission of inquiry to release around ₹44 crore to various establishments towards the balance amount due for providing various health services during COVID-19, but the commission had rejected their request pending inquiry.

However, the High Court clarified that the dues in question—specifically for RT-PCR tests conducted by the petitioners—were not under scrutiny by the Commission.

“It is clear that in the light of the undisputed/admitted fact that the BBMP had not paid the legitimate dues payable to the petitioners, in the absence of any material to show any kind of nexus or connection whatsoever between the liability of the BBMP and the inquiry commission, it cannot be said that the BBMP was not liable to pay/clear the legitimate dues payable to the petitioners,” the court said while directing release of the amount to the petitioners within six weeks, reports the Hindu.