High Court Attaches Salary Of Punjab Health Secy, Others For Not Paying Dues To Hospitals Despite Release Of Funds Under Ayushman Bharat

The Punjab and Haryana High Court has till October 16, attached salaries of senior officers, including the Punjab's Principal Secretary of the Health Department, for failing to release pending dues to hospitals under Ayushman Bharat Scheme.

Justice Vinod Bhardwaj said, "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."

The Court said that ordinarily any such action would have called for stern orders against the erring officials who misdirected the funds and diverted the same for unauthorized use.

However, the judge added that before proposing 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."

Justice Bhardwaj highlighted that, "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."

These observations were made while hearing the plea of the several hospitals in Punjab seeking the release of pending dues from the state government under Ayushman Bharat Scheme. It was  contended that notwithstanding the bills to tune of more than Rs.500 crores is pending with the State and the liability having been acknowledged by them but only an amount of Rs.26 crores approximately was released by the State.

ASG Satya Pal Jain appearing for the Union submitted that, as per the Ayushman Bharat Scheme, 60% of the medical bills are to be reimbursed by the Union of India and that an amount of Rs.355.48 crores upto financial year 2023- 24 has already been released by the Union Government to the State Government and that the obligation to disburse the same is on the State Health Agencies including their own component of the dues to the extent of 40%.

The State has not only not released its own share but has also misutilized the share already released by the Union of India, he added.

The Court noted that the State Government failed to offer any explanation as to why the undisputed payment of Rs.500 crores in question has not been released in favour of the petitioners- hospitals.

"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" observed the judge.

Justice Bhardwaj sought affidavit by the State on whether the amount received from Union of India towards Ayushmaan Bharat Payments could be used for the said purposes (for which the amount has been utilized) or not.

The Court also directed the Principal Secretary of Finance to file an affidavit detailing expenses incurred by the state on advertisements, renovation of govt houses etc between December 2021 and September 2024.

It further asked 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."

While adjourning the matter to October 16, the Court said that the information is being sought currently for examining as to whether the fundsreceived for any specific purpose are being misapplied or misutilized or not.

Mr. Adityajit Singh Chadha, Advocate for the petitioners.

Ms. Akshita Chauhan, DAG, Punjab.

Mr. Brijeshwar Singh Kanwar, Sr. Panel Counsel for respondent No.2-SHA.

Mr. Amandeep Singh Talwar, Mr. Bomi Patel and Mr. Varun Gupta, Advocates for respondent No.3.

Mr. S.P. Jain, Addl. Solicitor General of India with Ms. Gurmeet Kaur Gill, Sr. Panel Counsel for Respondent No.4- Union of India.

Title: INDIAN MEDICAL ASSOCIATION PUNJAB AND OTHERS v. STATE OF PUNJAB & ORS.

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