THE HON'BLE SRI JUSTICE NAGESH BHEEMAPAKA

COMMON ORDER:

In view of the commonality of the issue and grievance, these Writ Petitions are analogously heard and taken up for disposal by way of this common order. For discussion, the facts in W.P.

No.13390 of 2025 are taken as reference.

2. The petitioner, M/s. Sapthagiri Hospital, a private healthcare institution at Jammikunta, Karimnagar District, Telangana, has filed Writ Petition No.13390 of 2025 challenging the impugned Notice Rc.No.DRA/1010/2025, dated 26.03.2025, issued by Respondent Nos.4 and 5, through which the petitioner’s registration was cancelled with immediate effect and the hospital was placed in the block list.

3. Heard learned counsel for the petitioner and Smt. K. Swapna Madhuri, learned Assistant Government Pleader for Medical, Health and Family Welfare for the respondents. Perused the record.

4. Learned counsel for the petitioner submits that though the communication is titled a “Notice,” it effectively operates as an “Order,” passed without issuing a show-cause notice or providing an opportunity of hearing, in violation of Section 32 of the Clinical Establishments Act, 2010 and the principles of natural justice. It is further submitted that the impugned notice lacks specific particulars regarding the alleged discrepancies or “potential” fraudulent activities and was issued without application of mind. It is further alleged that the respondents acted arbitrarily and discriminatorily by targeting small rural hospitals like the petitioner’s while sparing others, thereby violating Article 14 of the Constitution. The petitioner, a reputed rural hospital providing affordable healthcare, asserts that the arbitrary cancellation has resulted in closure of the hospital, causing hardship to both the institution and the local public. Hence, the petitioner seeks to set aside the impugned notice and its consequential actions as illegal, arbitrary, and violative of statutory and constitutional provisions.

5. Learned Government Pleader for Medical, Health and Family Welfare for the respondents submits that the impugned Notice Rc.No.DRA/1010/2025, dated 26.03.2025, cancelling the registration of M/s.Sapthagiri Hospital, Jammikunta, and placing it in the block list was issued as per the directions of the Director of Public Health and Family Welfare (DPH&FW), Telangana, based on the CID enquiry. The CID investigation revealed that 28 private hospitals, including the petitioner hospital, had submitted fake or suspicious bills under the Chief Minister’s Relief Fund (CMRF) scheme, leading to criminal cases. Upon these findings, the DPH&FW directed District Medical and Health Officers to proceed under Sections 32 and 44 of the Clinical Establishments (Registration and Regulation) Act, 2010, for cancellation and penalties. The impugned notice, therefore, is not arbitrary but issued in accordance with law and official directions. The petitioner has not provided any valid explanation against the CID findings, and the action forms part of a statewide drive against fraudulent clinical establishments.

6. Considering the submissions made by both the learned counsel and the material on record, this Court finds that though the impugned communication is styled as a “Notice,” it effectively operates as an order of cancellation having adverse civil consequences. Admittedly, no prior show-cause notice or opportunity of hearing was afforded to the petitioner before passing such an order, which is contrary to Section 32 of the Clinical Establishments (Registration and Regulation) Act, 2010, and the principles of natural justice. In view of the commonality of the issue, the above finding shall apply to all connected Writ Petitions.

7. In view of the above finding, the impugned notices dated 26.03.2025, 10.04.2025, and 17.04.2025 are set aside. These Writ Petitions are disposed of, directing the respondents to initiate fresh proceedings in accordance with law by issuing a proper show-cause notice and aff