The Supreme Court has issued a strong warning to Indraprastha Apollo Hospital, stating that if free treatment is not provided to poor patients as per its lease agreement, the court will consider handing over the hospital to AIIMS. The court also directed the Centre and the Delhi government to conduct an inspection of the hospital’s records over the past five years.
A bench comprising Justices Surya Kant and N Kotiswar Singh took serious note of allegations that the hospital, run by Indraprastha Medical Corporation Limited (IMCL), had violated its 1994 lease agreement, which required it to provide free treatment to 30% of indoor and 40% of outdoor patients.
“If we find that poor patients are being denied free treatment, we will transfer the hospital to AIIMS,” the bench stated, as per a PTI report.
Inspection Ordered on Alleged Violations
The Supreme Court directed the Centre and the Delhi government to form a joint expert team to inspect Apollo Hospital’s records and determine whether it fulfilled its commitment to treating poor patients.
The case stems from a plea by IMCL challenging a Delhi High Court order from September 22, 2009, which accused the hospital administration of repeatedly violating its obligation to provide free medical care.
Hospital Built on Public Land, Now a Commercial Venture?
The court pointed out that Apollo Hospital was constructed on a prime 15-acre plot in Delhi, leased for a symbolic fee of ₹1, under an agreement that it would operate on a “no profit, no loss” basis. However, the hospital has allegedly become a fully commercial enterprise where treatment costs are unaffordable for the poor.
IMCL’s counsel argued that the hospital operates as a joint venture, with the Delhi government holding a 26% stake and benefiting from its profits. However, Justice Surya Kant responded, “If the Delhi government is profiting from the hospital instead of ensuring care for the poor, that is most unfortunate.”
Lease Expired, Government to Review Renewal Status
The Additional Solicitor General informed the court that Apollo Hospital’s 30-year lease had expired in 2023. The bench instructed the Centre and the Delhi government to investigate whether the lease had been renewed and, if not, what legal action had been taken regarding the land.
The court also asked for a report on the hospital’s total bed capacity and outpatient records from the past five years. Additionally, it demanded details on how many poor patients received free treatment during this period.
Next Steps
The Supreme Court has instructed the hospital administration to fully cooperate with the inspection team and submit all relevant records. The hospital has also been given the liberty to file an affidavit presenting its response.
The case will be reviewed again after four weeks, when the court will decide further action based on the inspection findings.
