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Karnataka HC orders BBMP, govt. to clear ₹10.41 crore COVID dues to private health centres pending since 2022

Karnataka HC orders BBMP, govt. to clear ₹10.41 crore COVID dues to private health centres pending since 2022

The Hindu3 days ago
The High Court of Karnataka has directed the State government and the Bruhat Bangalore Mahanagara Palike (BBMP) to pay ₹10.41 crore to two private health establishments towards the pending dues to them for providing COVID-19 testing facilities way back during 2020-2022.
Two petitions
Justice S.R. Krishna Kumar issued the directions while allowing the separate petitions filed by BGS Global Institute of Medical Sciences, Kengeri and Vijayalakshmi Diagnostics Pvt Ltd (VDPL), Nagarbhavi.
BGS had sought directions for release of ₹4.53 crore and VDPL had sought release of ₹5.88 crore while pointing out that the authorities, though have admitted payment due to the petitioners, had said that they were unable to release the remaining amount due to pendency of enquiry before a One-Man Commission of Inquiry into the irregularities occurred during COVID-19 pandemic between 2020 and 2023. The petitioners have said that the payment of the remaining amount is pending since 2022.
The BBMP had told the court that it had sought permission from the commission of inquiry to release around ₹44 crore to various establishments towards the balance amount due for providing various health services during COVID-19, but the commission had rejected their request pending inquiry.
Not under inquiry
However, the court said that non-payment of dues in relation to RT-PCR tests conducted by the petitioners was not the subject matter of the inquiry before the commission.
'It is clear that in the light of the undisputed/admitted fact that the BBMP had not paid the legitimate dues payable to the petitioners, in the absence of any material to show any kind of nexus or connection whatsoever between the liability of the BBMP and the inquiry commission, it cannot be said that the BBMP was not liable to pay/clear the legitimate dues payable to the petitioners,' the court said while directing release of the amount to the petitioners within six weeks.
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