Bombay High Court Dismisses PIL Challenging MPLADS Circular Allowing Funds for Private Hospitals in COVID-19 Relief. Circular dated April 8, 2020, permitting MPLADS funds for private hospitals is intra vires the MPLAD Scheme and not arbitrary.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The petitioner, a legal practitioner, filed a Public Interest Litigation challenging a circular dated April 8, 2020, issued by the Joint Secretary (MPLADS) of the Ministry of Statistics and Programme Implementation, Government of India. The circular permitted Members of Parliament to recommend funds under the Member of Parliament Local Area Development Scheme (MPLAD Scheme) for COVID-19 related works in private hospitals. The petitioner contended that the circular was ultra vires the MPLAD Scheme, which was intended for public works and not for private entities, and that it was arbitrary and violative of Article 14 of the Constitution. The court examined the MPLAD Scheme guidelines, which allowed works in private hospitals with certain conditions, and noted that the impugned circular was preceded by two earlier circulars dated March 24 and 28, 2020, which had already permitted such use. The court held that the circular was within the rule-making power of the Central Government and did not violate any statutory provision. The court also rejected the argument of arbitrariness, stating that the classification between government and private hospitals was reasonable in the context of the pandemic. The petition was dismissed.

Headnote

A) Constitutional Law - Delegated Legislation - Validity of Circular - MPLAD Scheme - The impugned circular dated April 8, 2020, allowing MPLADS funds to be used for private hospitals for COVID-19 relief, was challenged as ultra vires the MPLAD Scheme. The court held that the circular was within the rule-making power of the Central Government under the MPLAD Scheme and did not violate any statutory provision. The Scheme itself permits works in private hospitals with certain conditions, and the circular merely clarified the position during the pandemic. (Paras 1-20)

B) Public Interest Litigation - Locus Standi - Challenge to Government Policy - The petitioner, a legal practitioner, filed a PIL challenging the circular. The court held that the petitioner had locus standi as the matter involved a question of public importance concerning the utilization of public funds. However, the court found no merit in the challenge. (Paras 1-5)

C) Administrative Law - Arbitrariness - Reasonable Classification - The petitioner argued that the circular was arbitrary and discriminatory. The court held that the classification between government and private hospitals was reasonable and based on the need to expand healthcare infrastructure during the pandemic. The circular did not violate Article 14 of the Constitution. (Paras 15-18)

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Issue of Consideration

Whether the impugned circular dated April 8, 2020, issued by the Ministry of Statistics and Programme Implementation, permitting Members of Parliament to recommend MPLADS funds for COVID-19 related works in private hospitals, is ultra vires the MPLAD Scheme and arbitrary.

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Final Decision

The petition is dismissed. The impugned circular dated April 8, 2020, is upheld as valid and intra vires the MPLAD Scheme.

Law Points

  • Doctrine of delegated legislation
  • Principles of natural justice
  • Public interest litigation
  • Locus standi
  • MPLAD Scheme interpretation
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Case Details

2020 LawText (BOM) (12) 25

Public Interest Litigation (St.) No. 92550 of 2020

2020-12-11

Dipankar Datta, CJ, G.S. Kulkarni, J

Shekhar Jagtap, Sairuchita Chowdhary, Ninad Naik i/b M/s. J. Shekkar & Co. for Petitioner; P.P. Kakade, Government Pleader with Nisha Mehra, Assistant Government Pleader for State

Mrs. Neelima Sadanand Vartak

Union of India and Others

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Nature of Litigation

Public Interest Litigation challenging a circular issued by the Ministry of Statistics and Programme Implementation allowing MPLADS funds for private hospitals for COVID-19 relief.

Remedy Sought

Quashing of the impugned circular dated April 8, 2020.

Filing Reason

Petitioner alleged that the circular was ultra vires the MPLAD Scheme and arbitrary.

Previous Decisions

Two earlier circulars dated March 24 and 28, 2020, had already permitted similar use of MPLADS funds.

Issues

Whether the impugned circular dated April 8, 2020, is ultra vires the MPLAD Scheme? Whether the circular is arbitrary and violative of Article 14 of the Constitution?

Submissions/Arguments

Petitioner argued that the MPLAD Scheme is meant for public works and not for private hospitals, and the circular is beyond the scope of the Scheme. Petitioner argued that the circular is arbitrary and discriminatory as it allows funds for private hospitals but not for other private entities. Respondents argued that the circular is within the rule-making power and is a reasonable response to the pandemic.

Ratio Decidendi

The MPLAD Scheme permits works in private hospitals with conditions, and the impugned circular is a valid exercise of delegated legislative power. The classification between government and private hospitals is reasonable and not arbitrary.

Judgment Excerpts

The impugned circular was preceded by two circulars dated March 24 & 28, 2020. The court held that the circular was within the rule-making power of the Central Government under the MPLAD Scheme.

Procedural History

The petitioner filed a PIL in the Bombay High Court challenging the circular dated April 8, 2020. The court reserved judgment on November 24, 2020, and pronounced on December 11, 2020.

Acts & Sections

  • Constitution of India: Article 14
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High Court Bombay High Court Dismisses PIL Challenging MPLADS Circular Allowing Funds for Private Hospitals in COVID-19 Relief. Circular dated April 8, 2020, permitting MPLADS funds for private hospitals is intra vires the MPLAD Scheme and not arbitrary.
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