(1.) Shri J.S. Sandhu, I.A.S., Deputy Commissioner, Sangrur-cum-President, District Red Cross Society, Sangrur, is present in court in pursuance to our order dated July 11, 1995.
(2.) The petitioners who are running chemist shops in the town of Sangrur, have challenged the grant of lease to respondent No. 5 by the Deputy Commissioner-cum-President of the District Red Cross Society, Sangrur, to run medical store in the Civil Hospital, Sangrur. Brief facts may be noticed.
(3.) The State of Punjab with the main object to provide good quality medicines to patients on reasonable rates placed at the disposal of the Red Cross Societies in different parts of the State, certain premises in the hospital to run Chemist shops themselves. However, it was noticed that at quite a few places the District Red Cross instead of running the Chemist shops themselves in the hospitals, gave the same to private persons on rent or lease. According to the Government, the whole idea of placing the shops at the disposal of the Red Cross was being frustrated as it had been noticed that the private persons, to whom the shops had been leased by the Red Cross, were selling the medicines at a higher rate, which brought bad name to Red Cross and also put the Government in an awkward position. The Government in the Health & Family Welfare Department issued instructions on November 6, 1992, copy attached as Annexure R-1 with the written statement of respondents No. 1 to 3, to all the Deputy Commissioners in the State of Punjab, who are Ex.-Officio President of the District Red Cross Societies, that in view of what has been noticed above, it had been decided that the chemist shops in the Government hospitals should be run by the District Red Cross themselves and in no case these shops should be given to the private persons on rent or lease. The Secretary to Government of Punjab, Department of Health and Family Welfare, wrote a D.O. letter dated February 9, 1995, to all the Deputy Commissioners in the State of Punjab with a copy to Dr. S.S. Walia, Civil Surgeon, requesting him to ensure strict compliance of the Government instructions regarding the running of the Chemist shops in the hospital by the Red Cross itself and not leasing out to the private persons. The reference to the earlier instructions dated November 6, 1992, which were reiterated or October 18, 1994, and November 24, 1994, was made. It was specifically mentioned that it had been noticed that instead of running the medical stores by the Red Cross Society itself, these were being leased out or auctioned to the private individuals in contravention of the Government instructions. It had been noticed that such lessees were indulging in mal-practices by fleecing the innocent and needy patients/customers by over-charging and supplying medicines of cheap and spurious quality in the name of Red Cross. This was giving rise to public suspicion of the welfare activities of the Red Cross. It was further mentioned that the unhealthy practice of leasing out/auctioning of the drugs stores in hospitals should be abandoned altogether. The case of the petitioners is that in complete, violation of the instructions of the State Government, the Deputy Commissioner as ex-officio President of the Red Cross Society was leasing out the shops in the premises of the hospital. It was stated that in any case if the lease is to be given to a private party, the same should be by an open auction and it should not be just by negotiations.