Kerala High Court Questions Centre's Stand on AIIMS Proposal, Citing Healthcare Handicap

The Kerala High Court on Wednesday sharply questioned the Union Government’s stance on the long-pending proposal to establish an All India Institute of Medical Sciences (AIIMS) in the state, orally observing that a relatively better healthcare infrastructure should not become a “handicap” for Kerala. A Division Bench comprising Chief Justice Soumen Sen and Justice Syam Kumar was hearing writ petitions seeking the establishment of an AIIMS under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY). The Court directed the Centre to review the issue and take necessary steps, posting the matter for further hearing after six weeks.

The Court’s remarks come in the backdrop of the Deputy Solicitor General of India (DSGI) submitting that the proposal was still at the consultation stage and that a decision could be taken only after the Centre decides on the continuation of the PMSSY for the next five years. The DSGI further argued that the Union Government was prioritising states with weaker healthcare infrastructure, and that Kerala, with its comparatively better facilities, did not require immediate attention.

The “Handicap” Argument

The Bench was quick to challenge this logic. “So, does the State of Kerala not require an AIIMS? Is that the stand of the Centre?” the Court asked orally. It questioned whether the presence of a larger number of private hospitals could be treated as a disqualification for Kerala. “There are more private hospitals here, Is that a disqualification? In terms of density of population, State of Kerala is highest… what are the criterion that the State does not meet?” the Court asked.

The Court further pointed out that not all citizens can afford private healthcare. “All of them cannot go to Aster and other big big names… Which criterion is not followed?” the Bench remarked, underscoring the need for accessible public healthcare for the poor and needy.

Disparity in Allocation

The Bench also noted that AIIMS institutions have been established in other relatively affluent parts of the country, including multiple institutions in some states. “That becomes a handicap for the State? Why has Delhi AIIMS come? All affluent people are there… There are States with more than one AIIMS. There are enough reasons for Kerala to have an AIIMS… We are not satisfied with the criteria,” the Court said.

The Court observed that the idea of establishing an AIIMS in Kerala dates back to June 2016. The state had identified locations on earlier occasions under the PMSSY scheme, and on October 9, 2025, a memorandum was submitted to the Union Health Minister seeking approval for an AIIMS in Kozhikode district. Despite prolonged correspondence, no substantial progress had been made.

Legal and Administrative Implications

The Court’s intervention raises significant questions about the transparency and objectivity of the criteria used by the Centre for allocating AIIMS under the PMSSY. Legal experts point out that the right to health is an integral part of Article 21 of the Constitution, and the state’s obligation to provide accessible healthcare cannot be defeated by a comparative advantage in private infrastructure. The High Court’s observation that population density and the inadequacy of existing government hospitals must be considered could set a precedent for how healthcare infrastructure is distributed among states.

The Bench also noted that the State of Kerala had already identified land for the proposed institution, though the Centre maintained that identification of land was not equivalent to formal allocation. The Court recorded the DSGI’s assurance that the Centre would review the matter and directed the Union Government to take necessary steps.

Impact on Healthcare Policy

This case highlights the tension between centralised resource allocation and state-specific needs. Kerala, despite having better health indicators than many states, faces a high patient load due to its dense population and the influx of patients from neighbouring regions. The lack of a central government-run super-specialty hospital like AIIMS forces many residents to rely on expensive private care or travel to other states.

The Court’s directive comes at a time when the PMSSY scheme is under review for the next five-year cycle. If the Centre is compelled to adopt more objective and need-based criteria, it could reshape the distribution of AIIMS and other central healthcare institutions across the country.

Conclusion

The Kerala High Court has put the Union Government on notice, demanding a clear rationale for the delay and exclusion. With the matter now set for further hearing in six weeks, all eyes will be on the Centre’s response. For legal professionals, the case serves as a reminder that administrative discretion in public health allocation must be reasonable, non-arbitrary, and grounded in constitutional principles. The outcome could have far-reaching implications for the right to health and federal healthcare policy in India.