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Delhi High Court grants time to petitioner saying Delhi govt formed Delhi Healthcare Corp without LG approval

The Division Bench led by Chief Justice D.N Patel and Justice Jyoti Singh, refused to issue notice in the plea by a financial economist and law student seeking institution of Special Investigation Team probe into the alleged incorporation in contravention of various laws.

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The Delhi High Court, on Wednesday, while hearing a plea alleging the Delhi Government to have incorporated Delhi Healthcare Corporation Limited without prior approval of the Lieutenant Governor of Delhi, granted time to the petitioner to apprise the Court about the law wherein it is specified that such a permission shall be sought for.

The Division Bench led by Chief Justice D.N Patel and Justice Jyoti Singh, refused to issue notice in the plea by a financial economist and law student seeking institution of Special Investigation Team probe into the alleged incorporation in contravention of various laws. 
The Bench underscored that “these aspects though have been argued by the petitioner, could not be justified at law”, and accordingly, granted time to the party-in-person to point-out to the Bench that how and under which law, prior to incorporation, the Delhi Government should have obtained permission from the L-G. 

The matter is slated for November 8, 2021.

The petition has been filed by one Abhijit Mishra through Advocate Payal Bahl. The plea avers that Delhi Healthcare Corporation Limited was incorporated in the year 2016 as a public limited company, by the Delhi Government,  for providing non-clinical, administrative and support services to the hospital and health units on behalf of Department of Health and Family Welfare.

The plea alleges that neither the Delhi Chief Minister nor his Council of Ministers are empowered to order for such incorporation without the appropriate authorization and approval of the L-G as per the provisions laid down under the Constitution, Government of National Capital Territory of Delhi Act, 1991, as well as the the Transaction of Business of the Government of National Capital Territory of Delhi Rules, 1993.

Also Read: Delhi High Court directs UIDAI, RBI, Google India to respond to PIL against unauthorised storage of Aadhaar, bank information by Google Pay

“The Government of National Capital Territory of Delhi has incorporated the Delhi Healthcare Corporation Limited without the approval and authorization of the Honorable Lt. Governor in blatant violation of the Article 239AA and 299 Constitution,”

-states the plea, relying on various RTI reports and public records.

The plea further alleges that the L-G has not approved allocation of funds for the incorporation of DHCL, nor has the books of accounts of DHCL been audited by the Comptroller and Auditor General of India since 2016 till date. It contends that the there is misappropriation of state funds for the incorporation of DHCL by the ruling government, affecting several schemes for the welfare of the people. 

In light of the above, the plea seeks direction to the CAG to audit the accounts, functions and role of DHCL and to submit the report to the L-G. The plea further seeks a direction to the L-G to take appropriate action against the erring officials of the Delhi Government for defrauding the state’s fund; and to instruct Delhi Police – Economic Offence Wing to initiate criminal investigation proceeding for criminal breach of trust and misappropriation of state funds against such officials.

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