Special audit of Delhi Medical Council flags Rs 10 crore losses, costly gifts, irregular service extensions: Report

New Delhi: The special audit, earlier ordered by the Delhi Government to investigate irregularities in the Delhi Medical Council (DMC), has flagged major financial mismanagement in the functioning of the Council, estimating losses worth over Rs 10 crore to the government exchequer, the Indian Express has reported.

These reported mismanagement included expensive Diwali gifts and foreign trips, while administrative irregularities included the irregular extension of service and enhancement of retirement age of the former DMC Registrar.

In its report, the special audit noted that the then Registrar, in his official capacity, was responsible for the government's loss of more than Rs 5.57 crore between 2019 and 2025. This loss reportedly occurred due to a reduction in the renewal fees for the doctors while renewing their medical council registration. 

Also Read: Govt orders special audit of Delhi medical council

Holding the former registrar responsible, the audit report has suggested that the government should recover from him the monetary benefits exceeding Rs 3.23 crore, which he had received as salary, allowances, and related expenditure, the Indian Express has reported.

The Delhi Medical Council is an autonomous statutory body enacted under the Delhi Medical Council Act 1997 to regulate the practice of the modern system of medicine in Delhi. DMC also ensures that private doctors in the city are following ethical practices. It is the only statutory body in Delhi to handle complaints of medical negligence and professional misconduct in Delhi.

Medical Dialogues had earlier reported that last year in February, the Government had warned of dissolution if the council failed to resolve its "systemic irregularities". Earlier, the Delhi Health Department had sent a proposal to L-G Saxena seeking control over the body under Section 29 of the DMC Act, 1997. The proposal recommended the dissolution of the council for a specified period.

The Delhi Government had sent the proposal amid allegations of mismanagement and irregularities in the functioning of the Council. In its note recommending the dissolution, the department had accused the Council of overstepping its authority and misusing powers granted under the Delhi Municipal Corporation (DMC) Act.

Last year, a five-member inquiry panel set up by the Delhi Health Department submitted its report to the Government. The panel was set up by the Health Department following a series of complaints against the Medical Council. One of these charges was extending the retirement age of the DMC registrar from 60 to 65 years without the approval of the Government and granting a further one-year extension of tenure from December 1, 2024.

Later, the Delhi Government ordered a special audit of the Council to investigate the financial irregularities and recoveries allegedly associated with the tenure of the former registrar of the Council. As per the official communication issued by the Directorate of Audit, Government of NCT of Delhi, it was decided that the special audit would be conducted by an audit team comprising Senior Accounts Officer Smt Savita Jain, Sh Vijay Kumar Rajput (Consultant), and Smt Sadhna, Data Entry Operator.

The audit team was tasked to assess the "exact quantum of financial irregularities", and "financial recovery of unlawfully gained monetary benefits by Dr Tyagi," who served as acting registrar and president/vice-president of the Delhi medical council. Further, the audit had the responsibility to examine the losses to the government's exchequer due to the alleged illegal extension of the former Registrar's tenure.

As per the latest media report by the Indian Express, the report mentioned that medical council extended its registrar's tenure, enhanced his retirement age and granted an extension of service to him without obtaining the mandatory approval from the competent authority.

The former DMC registrar was due to retire at 60 in November 2019. However, a DMC amendment in February enhanced his retirement age to 65. After he turned 65 on November 3, 2024, the DMC on November 11 approved an additional one-year extension from December 1, 2024. 

The audit report noted that the DMC produced no records to indicate that the former registrar had fulfilled the eligibility conditions prescribed under guidelines issued by the Union Ministry of Health and Family Welfare for continuation in service up to the age of 65 years. It mentioned, "The mandatory prior approval of the competent authority for such enhancement was neither sought nor obtained."

"These irregular actions resulted in avoidable financial liability to the government exchequer on account of payment of salary and other related allowances made to Dr Tyagi… for the period from 01.12.2019 to 10.02.2025 (beyond the age of 60 year to till his resignation)," further mentioned the report, adding that the total loss amounted to Rs 3,23,57,768.

In addition, the audit held the former registrar liable for financial irregularities worth more than Rs 1.24 crore on account of regularisation of multi-tasking staff to lower division clerk posts, irregular payments made to medical insurance of council members, and purchase of costly gifts, in violation of the prescribed financial rules and procedures. Further, the audit report suggested that the government recover early Rs 13 lakh spent in lieu of the mandatory three-month notice period required for tendering resignation as per the DMC Act and Rules.

Apart from this, the report also highlighted non-maintenance of stock records and purchase of expensive gifts worth Rs 64.47 lakh between 2019-20 and 2024-25. It also flagged discrepancies in the maintenance of service books, which contain an employee’s service history, including promotions, pay, leave and transfers.

Besides, the audit, also scrutinised all the payments made to the former registrar as salary and allowances, pay fixation, leave encashment, bonus, medical expenses, court fees, foreign visits, hiring of vehicle and telephone expenses.

Meanwhile, in response to these allegations, the former registrar termed the audit findings as 'misleading' and maintained that they appeared aimed at "deliberately creating a false public perception of corruption where none has been established."

He alleged that the issue concerning the extension of his service was being selectively projected, as him, being the registrar, was merely an employee of the medical council. “An employee cannot grant an extension to himself. He claimed that "the extension of service was approved by a duly constituted 25-member Delhi Medical Council through its competent decision-making process. Significantly, many of the very persons now attempting to raise false allegations were themselves signatories to or participants in those decisions."

Further, he also added that the matter is sub judice and any attempt to publicly pronounce guilt or create a media narrative was "premature, improper, and contrary to principles of natural justice."

Also Read: Delhi Medical Council Registrar Resigns After Govt Threatens Dissolution of Council