HC notice to Delhi Govt on plea seeking audit of Delhi Healthcare Corporation

The DHC is a registered company that provides administrative services to hospital and health units.

The petition filed by a financial economist, Abhijit Mishra claimed that since the DHC's incorporation in 2016, the CAG had not reviewed or inspected its books of accounts and operations.

He added that the incorporation of DHCL took place without the prior approval and authorization of the Lieutenant Governor, adding that it therefore went against the Indian Constitution, the GNCTD Act, 1991 and the Transaction of Business of the Government of NCT of Delhi Rules, 1993.

The petition contended that the DHC was functioning in violation of Articles 239AA and 299 of the Constitution of India Act, 1991, the Companies Act of 2013, and the Transaction of Business of the Government of National Capital Territory of Delhi Rules, 1993.

The plea further said that the Delhi Government not only incorporated the DHC without the approval and authorisation of the L-G but also allocated funds to it in contravention of the Government of National Capital Territory of Delhi Act, 1991.

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The petitioner also referred to the Govt. Of NCT of Delhi vs Union Of India case where it was noted that a recommendation of the Lieutenant Governor is mandatory before introducing a bill or amendment in the Delhi Legislative Assembly. A provision was made for the amendment of the law with respect to any "financial obligations" to be undertaken by the Delhi Government.

According to a recent media report in Live Law, the petitioner observed that the Delhi Healthcare Corporation received the equity capital funding from the corpus of Delhi Arogya Kosh. It claimed that an amount of Rs 5 crore have been transferred to DHCL from the Delhi Arogya Kosh which is funded by the Delhi government. However, no auditing has taken place in spite of the orders passed by the High Court in 2019.

"According to the Delhi govt, they've not given a single penny to DHCL but, the balance sheet of Delhi Arogya Kosh says they gave Rs 5 crores. These are two contradictory statements," the petition stated.

"Neither the Government of NCT of Delhi nor the directors of the Delhi Healthcare Corporation Limited has filed any details of annual general meeting and annual return or balance sheet since [its] incorporation into the Registrar of Companies," the petition said.

The advocate Gaurang Kanth appearing for the Delhi government, however, responded that a financial audit has been conducted for the Kosh.

After going through the submissions, Division bench of Chief Justice DN Patel and Justice Jyoti Singh issued notices and kept the matter for hearing on January 11, 2022, reports The Hindu.

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