ENFORCING COMPLIANCE: SUPREME COURT WARNS HOSPITALS OVER VIOLATION OF FREE TREATMENT OBLIGATIONS

INTRODUCTION
In Union of India v. Moolchand Khairati Ram Trust, Miscellaneous Application No. 1187 of 2019 in Civil Appeal No. 3155 of 2017, decided on 24 February 2026, the Supreme Court of India, comprising Justice Prashant Kumar Mishra and Justice N.V. Anjaria, took serious note of the alleged non-compliance with its earlier Judgment dated 9 July 2018 concerning obligations of private hospitals that had received concessional land from the Government.
The Court observed that Authorities had failed to take strict action against hospitals allegedly violating the Court’s directions regarding free treatment obligations.

BRIEF FACTS
The matter arose from a Compliance Affidavit filed by the Government of the National Capital Territory of Delhi pursuant to directions issued by the Supreme Court on 21 January 2026. The Affidavit revealed that several hospitals were allegedly violating the Court’s earlier Order but that no effective enforcement action had been taken by the concerned Authorities, including the Delhi Government, Delhi Development Authority, Land and Development Office and the Municipal Corporation of Delhi.
The Court noted that despite identifying violations, the Authorities had treated the issue casually and had not taken meaningful steps against the erring hospitals.

ISSUES OF LAW
The primary issue before the Court was whether Authorities had adequately enforced compliance with the Supreme Court’s earlier directions requiring certain hospitals, which had obtained land on concessional terms, to fulfil their obligations toward public healthcare.
The Court also considered whether further directions were necessary to ensure accountability and compliance.

ANALYSIS OF THE ORDER
The Supreme Court expressed dissatisfaction with the manner in which Government Authorities had handled the issue. It observed that although violations had been identified in several hospitals, effective action had not been initiated.
To ensure proper enforcement, the Court appointed the Secretary, Department of Health, Government of NCT of Delhi, as the Nodal Officer responsible for taking appropriate measures against hospitals found to be violating the Court’s earlier directions.
The Court directed that relevant authorities, including the Delhi Development Authority, Land and Development Office, and Municipal Corporation of Delhi, must coordinate with and respond to the Nodal Officer in implementing corrective measures.
Further, the Court issued Show-Cause Notices to numerous hospitals listed in the Compliance Affidavit, directing them to explain why contempt proceedings should not be initiated against them for violation of the Court’s earlier Order and why the government concessions granted to them should not be withdrawn.
The Court also directed that Notices be served on the hospitals and that an affidavit of service be filed before the next hearing.

CONCLUSION
This Order underscores the Supreme Court’s commitment to ensuring enforcement of judicial directions in matters involving public welfare. By appointing a nodal officer and issuing show-cause notices to allegedly non-compliant hospitals, the Court sought to reinforce accountability among both regulatory authorities and private institutions benefiting from government concessions.
The matter was directed to be listed again for further consideration, signalling continued judicial monitoring of compliance with obligations tied to public healthcare commitments.

SARTHAK KALRA
Senior Legal Associate
The Indian Lawyer & Allied Services

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