FIR against pvt hosp for not refunding fee to patients on NMC directions

Nagpur: In possibly the first such action in the state, Nandanvan police registered an offence against SevenStar Hospital, Jagnade Square, for not refunding excess amount to patients despite orders of Nagpur Municipal Corporation (NMC). The action has been taken on a complaint lodged by the civic body.
NMC had also fined this hospital Rs5 lakh, recovery of which has been kept in abeyance by the Nagpur bench of Bombay high court on Thursday.
Nandanvan police registered offences under sections of IPC, Disaster Management Act, and Epidemic Diseases Act against the management and others of SevenStar Hospital on Thursday. Zonal medical officer of NMC Nehru Nagar zone Dr Gajanan Pawane lodged the complaint.
As per the FIR, municipal commissioner Tukaram Mundhe had on August 14 issued orders to the hospital to refund Rs6,86,527 to 17 non-Covid patients within three days. But the hospital did not refund the excess amount in the time period.
In the same order, Mundhe had directed the hospital to pay a fine of Rs5 lakh for non-compliance with his earlier orders. The hospital has not yet deposited the fine with the civic body.
The civic chief had also asked the hospital to give details about charges levied on 21 other non-Covid patients and submit bills of 687 others of the total 991 non-Covid patients, which were not given to NMC’s squad during inspection and also after show cause notice.
TOI had reported on August 3 the hospital recovered much higher charges than the rates approved by state government and NMC from a Covid-19 positive patient. Taking cognisance, Mundhe had formed a five-member squad for surprise visit of private hospitals and initiate action for overcharging Covid and non-Covid patients. IAS officer Jalaj Sharma, additional municipal commissioner at NMC, was appointed head of the squad, which inspected the hospital on the same day.
The squad found the hospital charged much more than approved rates from Covid as well as non-Covid patients. Mundhe had then issued show cause notice to the hospital on August 11. The hospital submitted a reply on August 13.
The hospital has reportedly refunded excess amount of around Rs1 lakh to some Covid patients. But the hospital sought one month time to refund excess amount to non-Covid patients, and also submission of details related to 21 non-Covid patients and bills of 687 non-Covid patients.
Citing non-compliance of orders, Mundhe had on August 14 issued order levying Rs5 lakh fine, and refund of excess amount of Rs6,86,527 to 17 non-Covid patients within three days.
On August 8, Mundhe had issued orders directing Wockhardt Dedicated Covid Hospital to refund excess amount of Rs9 lakh to Covid positive patients. The hospital had reportedly refunded the amount for which patients reportedly expressed gratitude to NMC. No action was taken as the hospital complied with the orders.
SevenStar had instead approached the high court, which on Thursday granted interim stay on recovery of Rs5 lakh fine for charging exorbitant fees from Covid patients. While issuing notices to respondents for final disposal, a division bench comprising justices Sunil Shukre and Anil Kilor directed them to reply within two weeks.
The petitioner hospital through counsel Shreerang Bhandarkar had challenged NMC’s notification of August 14 imposing a penalty of Rs5 lakh for not following notification issued by public health department.