Supreme Court imposes 2 Crore fine on Medical College for Fraud

The Supreme Court has fined a medical college Rs 2 crore for trying to deceive inspectors by projecting healthy people as patients as it dismissed a plea the institute had filed to reverse a decision the Medical Council of India had taken.


The MCI had decided not to renew permission for the Telangana-based Mahavir Institute of Medical Sciences to admit its third batch of 150 MBBS students for the academic year 2018-19. “The petitioner is not entitled to any relief as… (it) does not meet the required standards for renewal of permission for admission to the third batch of MBBS students. We take serious note of the fraud played by the petitioner in projecting healthy persons as patients in their hospital for the purpose of showing compliance of the minimum standards,” a bench of Justices S.A. Bobde and L. Nageswara Rao said.

“We, therefore, dismiss the above writ petition with (an) exemplary cost of Rupees Two Crore to be paid by the petitioner, within a period of four weeks from today, to the Supreme Court Advocates-on-Record Welfare Trust.”The order, passed on August 6, was formally uploaded on Wednesday. The institute had earlier submitted an application for admitting the third batch (second renewal) of students and an inspection was conducted on November 8 and 9, 2017.


“Deference has to be shown to findings of an expert body which has found that the facilities in the Petitioner-College are inadequate. Unless there is a jurisdictional error or ex facie perversity in an inspection report, this Court will not interfere with a decision taken on the basis of recommendation of an expert body,” the bench said.

The bench further observed that the institute is guilty of deception and fraud after it found in the report that after physical inspection, it was found that a number of patients were not genuine.

The bench observed: “The assessors after a physical inspection, found that a number of patients were not genuine. The Assessors were of the opinion that patients with minor ailments were admitted in the hospital. There were others who were shown as patients with no serious health condition deserving an admission in the hospital. This was done by the Petitioner with a view to get renewal for admission of students by showing that it was complying with the minimum standards. The petitioner is guilty of deception and fraud.”

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