Overcharging, failure to display rate lists to attract ₹50,000 penalty at PGI

The enhanced penalties will apply only to new contractors, while existing contractors will continue to be governed by the penalty clauses specified in their respective tender agreements

Commercial establishments at the Post Graduate Institute of Medical Education and Research (PGIMER) will face a penalty of ₹50,000 for each violation involving failure to display rate lists or overcharging customers, under revised penalty provisions approved by the institute.

The penalty for maintaining unclean or unhygienic shop premises has also been increased from ₹5,000 to ₹20,000. (HT File)

The enhanced penalties will apply only to new contractors, while existing contractors will continue to be governed by the penalty clauses specified in their respective tender agreements.

The institute has approved higher penalties to ensure accountability, transparency and compliance with prescribed norms among commercial shops and other establishments operating within its premises.

Under the revised provisions, the penalty for failing to display rate lists and discount information has been increased fivefold, from ₹10,000 to ₹50,000. Similarly, the fine for overcharging customers has been raised from ₹10,000 to ₹50,000 for each violation.

The penalty for maintaining unclean or unhygienic shop premises has also been increased from ₹5,000 to ₹20,000. The sale of spurious, soiled, damaged or expired products will attract a penalty of ₹50,000 per violation and may also result in suspension or cancellation of the shop’s licence.

The revised provisions also cover violations such as failure to issue bills, improper waste disposal, encroachment and non-compliance with fire safety requirements. Serious violations may invite further legal action in addition to penalties imposed by PGIMER.

The decision follows a review of the existing penalty provisions by a committee constituted by the institute. The committee met on October 16, 2026, under the chairmanship of deputy director administration Pankaj Rai.

PGIMER director Dr Vivek Lal said, “We want to ensure fair practices, reasonable pricing, cleanliness and accountability so that patients and their attendants can access these services with confidence. The enhanced penalties are intended to send a clear message that violations of prescribed standards will not be taken lightly and that commercial establishments must maintain the highest standards of responsibility and compliance.”

However, contractors have raised concerns over the financial viability of running commercial establishments within the institute under the existing tender conditions.

Dheeraj Dhawan, who runs the canteen in the new OPD building, which witnesses over 10,000 patients a day, said the revised penalties would affect contractors awarded new tenders, as existing agreements already specify penalty amounts.

“The impact of the decision will be on new tenders. In existing tenders, penalty amounts are already defined,” he said.

Questioning the financial viability of the existing arrangements, Dhawan said PGIMER was issuing tenders without adequately factoring in market inflation. He added that the monthly licence fee charged by the administration was exorbitant, while the rates prescribed for food items were minimal.

“How is a contractor supposed to run the business under these conditions? Apart from the hefty licence fee, I have to bear expenses such as salaries, electricity and ration. It is not possible to run the business at the rates decided by the institute,” he said.

Deputy director administration Pankaj Rai said the revised penalties were aimed at making shopkeepers more responsible and ensuring that patients and visitors received fair and reliable services.