Delhi HC seeks LG, CAG stand on plea for auditing Delhi Healthcare Corporation

The Delhi High Court Monday sought the stand of Delhi government, Lieutenant Governor and Comptroller and Auditor General of India's on a petition seeking the audit Delhi Healthcare Corporation (DHC) accounts.

A bench of Chief Justice D N Patel and Justice Jyoti Singh issued notice on the public interest litigation by Abhijit Mishra, a financial economist, and asked the respondents to file a short reply.

The petitioner asserted that since its incorporation in 2016, the CAG has not reviewed or inspected the books of accounts and operations of DHC, a registered company which provides administrative services to hospital and health units.

The petitioner has argued that the Delhi government not only incorporated the DHC without the approval and authorization of the L-G but also allocated funds to it in contravention of the Government of National Capital Territory of Delhi Act, 1991.

It is stated that the CAG has not received any request to audit the books of accounts and operations of DHC from the Delhi government till date and its annual report or audit report was not tabled before the Legislative Assembly in 2016, 2017, 2018 or 2019.

The petition has contended that the Corporation is functioning in violation of Articles 239AA and 299 Constitution of India Act, 1991, Companies Act of 2013 and the Transaction of Business of the Government of National Capital Territory of Delhi Rules, 1993.

“Neither the Government of NCT of Delhi nor the Directors of the 'Delhi Healthcare Corporation Limited' have filed any details of Annual General Meeting and Annual Return or Balance Sheet since incorporation to the Registrar of Companies. The Directors of the 'Delhi Healthcare Corporation Limited' have not got the balance sheet and books of accounts audited by the Auditor and Comptroller General of India as per the statutory rules of the Companies Act,” the petition reads.

The plea has also sought a direction to the L-G to constitute a Special Investigation Team to probe DHC's incorporation and take action against the erring officers.

The matter will be heard next on January 11.

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