Thiruvanathapuram: The state government takeover of Pariappally Medical College has been ruled out by the Delhi High Court on the ground that ESIC cannot transfer any of its assets to any other person including the state governments. The said ruling comes under Sections 59A and 59B of the ESI Act, 1948.
In 2015, when the Corporation found it difficult to run 4 of its medical institutions, it had decided to hand them over to the respective state governments.
Delhi HC Chief Justice, C Hari Shankar, in the order has stated:”…given the legislative mandate, we, therefore, hold that the action of the respondent in transferring the medical colleges and institutions to the state governments is without jurisdiction, contrary to law and is illegal.”
Commenting on the verdict, Kollam MP, N K Premachandran spoke of the need for an amendment to the statutory scheme, in order to legalize the handing over of colleges.
“We had demanded that the medical college and hospital should be run by the ESIC…” Mr. Premachandran told the TOI, further adding “They said they would go for the private partnership to run the college, if the state government did not take them over. It was then that the state government signed a MoU to take over the college and admitted students to the MBBS course.”
The MoU signed grants 35% seats in the medical college to children of ESIC employees and beneficiaries. The ESI beneficiaries are also entitled to subsidized treatment at the hospital.