The Supreme Court has directed the Delhi government and the Union of India to conduct a joint inspection of Indraprastha Apollo Hospital. This inquiry aims to determine whether the hospital has provided free treatment to poor patients as required under the terms of its lease agreement.
The bench, comprising Justices Surya Kant and N. Kotiswar Singh, passed this order in response to allegations that the hospital failed to meet its obligation of providing free healthcare. The court has asked for a comprehensive report detailing the number of poor patients treated in the past five years.
The Supreme Court has ordered the joint committee to examine and report on the following aspects:
Lease Agreement Status: Whether the lease deed has been renewed after its expiry, and if so, under what terms and conditions.
Government Land Recourse: If the lease has not been renewed, what steps have been taken to reclaim the government land.
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Bed and Patient Count: A team of experts must determine the hospital’s total bed strength and examine outdoor patient records for the past five years.
Free Treatment Verification: The affidavit must specify how many poor patients received indoor or outdoor treatment based on state authority recommendations in the last five years.
The court has also directed the hospital management to fully cooperate with the committee and has given them the liberty to submit their own status report regarding these aspects.
Background of the Case
The issue dates back to 1994 when 15 acres of prime land in Sarita Vihar, Delhi, was leased to Indraprastha Medical Corporation Ltd. (IMCL) at a symbolic rate of ₹1 per month. The Delhi government holds a 26% share in the hospital’s management. As per the lease agreement, the hospital was mandated to provide free treatment to poor patients, covering:
- One-third of the hospital’s total bed strength
- 40% of outdoor patients
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However, allegations arose that the hospital failed to fulfill this obligation. In response, the All India Lawyers Union (Delhi Unit) filed a Public Interest Litigation (PIL) before the Delhi High Court.
In 2009, the Delhi High Court found that the hospital was not complying with its obligations and issued directions to ensure free healthcare services for the underprivileged. The hospital management, however, challenged this ruling before the Supreme Court, arguing that it operated as a commercial venture.
Despite the Supreme Court’s directives in 2009, concerns remained over non-compliance. Given that the 30-year lease from 1994 has now expired, the court has once again stepped in, demanding a detailed report on the hospital’s compliance.
During the recent hearing, the bench issued a strong warning to the hospital, stating:
“If the hospital does not provide free treatment as per the lease obligations, its management may be handed over to All India Institute of Medical Sciences (AIIMS).”
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The court further criticized the hospital for turning into a commercial enterprise despite being expected to operate on a no-profit, no-loss basis. Justice Kant also expressed dismay over the Delhi government profiting from the hospital’s earnings, stating:
“It is most unfortunate that the government, which holds a 26% stake, is also benefiting while poor patients are being denied treatment.”
The Supreme Court has given the Delhi government and the Union of India four weeks to submit their report. The hospital management has also been directed to present relevant records to the expert committee.
The matter is scheduled for further hearing on May 14, 2025.
Case Title: INDRAPRASTHA MEDICAL CORPORATION LTD. THR. M.D. vs. ALL INDIA LAWYERS UNION .(DELHI UNIT), SLP(C) No.29482/2009
