High Court attaches salaries of healthcare workers in Punjab and others for non-payment of dues to hospitals despite release of funds under Ayushman Bharat rule

The Punjab and Haryana High Court has ordered attachment of salaries of senior officials, including the principal secretary of the Punjab Health Department, by October 16 for non-payment of outstanding dues to hospitals under the Ayushman Bharat scheme.

Justice Vinod Bhardwaj he said, “The Tribunal also takes preliminary note that no satisfactory explanation has been brought before the Tribunal as to why despite receipt of funds from the Government of India, the payments were not released to the petitioner-hospitals and under what circumstances the State Government could withhold the above amount after receiving the same from the Government of India on the basis of verified accounts and for further transfer to supplied hospitals“

The Court said that under normal circumstances, any such action would require stringent injunctions against erring officials who misdirected and misused funds.

The judge, however, added that before proposing any action, “it is considered advisable to obtain a detailed response from the state regarding the reimbursement of funds received by the State of Punjab from the Indian Union from December 2021 to date and how this money has been expended” used. “

Justice Bhardwaj emphasized that “the state, having received money for some specific purpose, is its depository only to pass it on to the actual beneficiaries and certainly the amount cannot be allowed to be withheld which would leave citizens struggling for their dues and misappropriate the said subsidies at the expense of the actual recipient“

These observations were made while considering applications of several hospitals in Punjab for waiver of arrears from the state government under the Ayushman Bharat scheme. It was alleged that despite bills of over Rs 500 crore being raised, the State was pending and liability was admitted by it, but the State released only an approximate amount of around Rs 26 crore.

ASG Satya Pal Jain appearing for the Union submitted that as per 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 crore till FY 2023-2024 has already been disbursed has been transferred by Union Government to the State and that it is the responsibility of the State Health Agencies to pay the same, including their own contribution component of 40%.

He added that the state has not only failed to release its share but also misused the share already released by the Indian Union.

The Tribunal observed that the State Government had not provided any explanation as to why the undisputed payment of Rs 500 crore in question was not released to the petitioners-hospitals.

“It is surprising that though the Union of India claims to have transferred an amount of over Rs 350 crore, even the amount which the State of Punjab/State Health Agency received from the Union of India has not been paid and the amount has been retained illegally,” the judge observed .

Justice Bhardwaj asked the State to produce an affidavit as to whether the amount received from the Union of India towards Ayushmaan Bharat Payments can be utilized for the said purposes (for which the amount was utilized) or not.

The tribunal also directed the Principal Secretary, Finance, to file an affidavit giving details of the expenditure incurred by the state on advertisements, renovation of government buildings etc. during the period December 2021 to September 2024.

He further asked for “litigation costs incurred in pursuing cases before the Hon’ble Supreme Court of India or the High Court of Delhi in connection with the defense/conduct of cases on behalf of the State of Punjab or any other person or agency and entity within or outside the State of Punjab.”

Adjourning the matter to October 16, the Court said information was currently being collected to investigate whether funds received for any particular purpose were being misused or misused.

Mr. Adityajit Singh Chadha, learned counsel for the petitioners.

Ms. Akshita Chauhan, DAG, Punjab.

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

Mr. Amandeep Singh Talwar, Mr. Bomi Patel and Mr. Varun Gupta, supporters of respondent No. 3.

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

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

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