High Court Issues Notice On Plea Challenging Incorporation Of Delhi Healthcare Corporation Ltd Without LG's Approval

The Division Bench of Chief Justice DN Patel and Justice Jyoti Singh has kept the matter for hearing on January 11, 2021.

The petition is filed by one Abhijit Mishra, appearing in person. He alleged that DHCL has been incorporated without the approval and authorization of the Lieutenant Governor and is thus in contravention of the Indian Constitution, the GNCTD Act, 1991 and the Transaction of Business of the Government of NCT of Delhi Rules, 1993.

He relied on the case of Govt. Of NCT Of Delhi vs Union Of India, where it was observed that a recommendation of the Lieutenant Governor, prior to the introduction of a Bill or amendment in the legislative assembly is mandatory, where it incorporates a provision for, inter alia, the amendment of the law with respect to any "financial obligations" to be undertaken by the Delhi Government.

In this regard it was pointed out that the equity capital funding for the Delhi Healthcare Corporation is from the corpus of Delhi Arogya Kosh.

The Petitioner added that ₹5 crore have been transferred from the Delhi Arogya Kosh fund by the Delhi govt to DHCL. However, despite the direction issued by the High Court in 2019, no audit of the same has taken place.

"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 ₹5 crores. These are two contradictory statements," Mishra submitted.

Advocate Gaurang Kanth appearing for Delhi government submitted that a financial audit has been conducted for the Kosh.

Case Title: Abhijit Mishra v. GNCTD