Punjab and Haryana High Court seeks info on Punjab’s expenses on ads, litigation, social schemes

The Punjab and Haryana High Court recently questioned the Punjab government over the State Health Agency’s failure to release pending dues to various hospitals under the Ayushman Bharat Scheme [Indian Medical Association Punjab and Others vs State of Punjab and Others].

Justice Vinod S Bhardwaj said there was no satisfactory explanation from the State on why funds already received from the government of India had been withheld and not released to the hospitals.

“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, 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 up till now and how that money has been utilized. The affidavit shall also inform 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 ordered.

The Court went a step ahead and directed the Principal Secretary, Finance to file an affidavit giving expenses incurred by the State on following heads from December 2021 till September 2024. 

(i) The expenses incurred for publishing advertisement in print and audio video media including break-up about the States and languages where such advertisements have been published/played. 

(ii) The expenses incurred on the renovation of the houses/ offices of Class-I officers as well as Ministers/MLAs in Punjab. 

(iii) Expenses incurred in purchase of new vehicles along with their make for the Ministers/ MLAs and Class-I officers in the State of Punjab. 

(iv) The litigation expenses paid for pursuing matters before the 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. 

(v) The expenditure incurred in various social welfare schemes such as free electricity, Atta Dal Scheme etc. as against the budgetary allocation for the same period. 

The Court said the information was being sought to examine if funds or grants received for any specific purpose are being misapplied or misused or not.

It added that the State, having received money for a specified purpose, is a custodian of that money and must only release it to the actual beneficiaries.

The government cannot be permitted to retain the amount or misappropriate the grants at the costs of the actual recipient and leave the citizens litigating for their dues, it asserted.

The Court was hearing a petition moved by Indian Medical Association (IMA) Punjab and others for release of their dues under the Ayushman Bharat Scheme.

An amount of over ₹500 crores was pending with the State Health Agency till December 2022 and only an amount of ₹26 crores has been released, the Court was told. In response, the State said the pending claims were under active consideration.

Additional Solicitor General Satya Pal Jain, representing the Centre, explained that as per the Ayushman Bharat Scheme, 60 per cent of the medical bills are to be reimbursed by the Union of India and the rest is to be done by the State government.

Jain further submitted that an amount of ₹355.48 crores, up to financial year 2023-24, has already been released by the Union of India 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 per cent.

However, he claimed that the State has not only not released its own share, it has misused the share already released by the Union of India.

Calling the withholding of payment surprising, the Court ordered that salaries of Kumar Rahul, IAS, Principal Secretary, Department of Health; Babita, Chief Executive Officer; Deepak, Director and Sharanjit Kaur, Deputy Director, State Health Agency, Department of Health and Family Welfare, Punjab shall remain attached till the next date of hearing

The matter will be heard  next on October 16.

Advocate Adityajit Singh Chadha represented the petitioners.

Deputy Advocate General Akshita Chauhan represented the State of Punjab.

Senior Panel Counsel Brijeshwar Singh Kanwar represented the State Health Agency.

Additional Solicitor General Satya Pal Jain with Senior Panel Counsel Gurmeet Kaur Gill represented the Centre.

Advocates Amandeep Singh Talwar, Bomi Patel and Varun Gupta represented another respondent.  

[Read Order]