In Brief
The Supreme Court upheld the Delhi government's policy requiring private hospitals allotted public land at concessional rates to provide free medical treatment to economically weaker patients (10% IPD and 25% OPD beds). The Court held that hospitals receiving state-subsidized land hold it in trust for public benefit and cannot operate as purely commercial enterprises. The obligation to serve the poor is inherent in the policy under which land was allotted, embedded in definitions of charity under statutory law, and mandated by the medical profession's ethical duties under Constitutional provisions and Medical Council regulations. The Court rejected arguments that new conditions required statutory enactment, finding that executive orders giving effect to pre-existing policy obligations were valid. The judgment struck down the High Court's decision quashing the policy.
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