Delhi: Apollo under apex court lens over mandatory free treatment, beds to poor

Apollo got land at a symbolic lease amount of ₹1 per month to set up a hospital and was required to provide free treatment and beds to poor patients

The Supreme Court on Tuesday ordered an inspection of Apollo hospital to scrutinise its records and to ascertain whether it has been providing free treatment and hospital beds to poor patients over the past five years, in fulfilment of the lease deed requirement binding the hospital, which got land at a symbolic lease amount of ₹1 per month.

Apollo Hospital did not respond to requests for a comment. (REUTERS)

The court was hearing an appeal filed by the Indraprastha Medical Corporation Limited (IMCL), that runs the Apollo hospital, challenging a September 22, 2009 order of the Delhi high court in a public interest litigation filed by All India Lawyers Union alleging that medical facilities are not being provided to the poor by the Apollo hospital.

Directing the Centre and the Delhi government to constitute a joint inspection team and submit a report in four weeks, the court said, “Find out if poor people are being treated there or this land has been grabbed for private interest. Discuss the matter at the highest level, and if need be, we will ask AIIMS to run the hospital.”

Apollo Hospital did not respond to requests for a comment.

The Apollo group in April 1988 signed a 30-year lease agreement with President of India acting through the Delhi Lieutenant Governor to construct a hospital, and the institution was commissioned on March 16, 1994. The deed allowed the group and its associate entities to construct a multi-specialty hospital on a 15-acre land parcel in Sarita Vihar, but required the hospital to set apart free diagnostic facilities to not less than one-third of the 600-bed multi-specialty hospital. It further stipulated that the hospital shall provide free diagnostic facilities to 40% of the OPD patients.

On Tuesday, an apex court bench headed by justice Surya Kant noted that the lease had expired in March 2024, and directed the Delhi government and the Union ministry of health and family welfare to file a comprehensive affidavit explaining whether the deed has been renewed since. The affidavit was to further explain “if lease deed has not been renewed, what lawful recourse has been initiated for restoration of government land”, the bench, also comprising justice N Kotiswar Singh, said.

The court further directed the Central and Delhi governments to depute a team of experts to count the bed strength of the hospital and records of OPD patients for the last five years. “The affidavit will explain how many poor patients on recommendation of the state authorities were provided indoor and outdoor treatment in the last five years,” the order said.

Additional solicitor general SD Sanjay, appearing for the Delhi government, pointed out that the hospital was set up to serve public welfare and for this reason, the lease amount was fixed at ₹1 per month. Unfortunately, he said, the hospital management refused to adhere to the obligations under the lease deed.

Advocate Bina Gupta, appearing for the hospital, informed the court that the Delhi government is a 26% stakeholder, and the profit is being proportionally shared with the state. The court observed, “It is most unfortunate that government is getting profit instead of serving poor people.”

The bench allowed the hospital to file a separate status report providing details of free treatment provided. As Gupta requested for the joint report of the Centre and Delhi government to be supplied to the hospital, based on which they could respond, the bench remarked, “You are the custodian of that information.”

Apollo hospital separately moved an application, seeking relaxation of the lease conditions. Gupta said, “Several hospitals which are similarly placed have got the relief. That order should be made applicable to my hospital.”

However, the court refused to entertain the application at this stage and directed the hospital to cooperate with the inspection and provide full assistance by producing all records requested by the inspecting team.