Disposed¶38

Gude Nagaraju, v. Employees State Insurance Corporation

Andhra Pradesh HC10 Dec 2025WP/23602/2017

Case brief

AI extract

What is this about?

ESI Corporation; establishment of 30 bedded ESI hospitals at Ongole, Bhimavaram, Kadapa and Anantapur; Article 226 writ of mandamus by ESI beneficiary; Director, Insurance Medical Services, Vijayawada; Santi Children Hospital, Ongole; verification of treatment and medicines supplied to ESI beneficiaries; ACB/CBI enquiry against empanelled hospital; replacement of 7th respondent hospital; Section 151 CPC interim application; W.P. No. 23602/2017; Justice Sumathi Jagadam.

What did the court decide?

Direction to the 3rd respondent to take necessary steps for setting up of 30 bedded ESI hospitals as expeditiously as possible; the writ petition stands closed with no order as to costs, and pending miscellaneous applications stand closed. ¶38

Gude Nagaraju, Vs Employees State Insurance… — Writ and Judicial Review | Andhra Pradesh HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the ESI Corporation should be directed to establish its own hospitals/dispensaries at district headquarters such as Ongole, keeping in view the maximum number of employees/beneficiaries in the town. +3 more

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Court's answer

On the instructions placed by learned counsel for the respondents (letter No./62.U-16014/8/2024-MEDICAL, dated 21.05.2025), the Court recorded that the locations of Ongole, Bhimavaram, Kadapa and Anantapur are eligible for establishment of 30 bedded ESI hospitals.

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Ratio / Principle

The 3rd respondent (Director, Insurance Medical Services, Vijayawada) is directed to take necessary steps for setting up of 30 bedded ESI hospitals as expeditiously as possible.

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Detailed headnote1 paragraphs

Writ Petition No. 23602 of 2017 (High Court of Andhra Pradesh at Amaravati; Sumathi Jagadam, J.; order dated 11.12.2025): The petitioner, an ESI beneficiary of Ongole, had sought mandamus directions requiring the Employees State Insurance Corporation to (i) establish its own hospitals/dispensaries at district headquarters such as Ongole, (ii) periodically verify the treatment and medicines supplied to beneficiaries, (iii) hold departmental/ACB/CBI enquiry against the 7th respondent hospital (Santi Children Hospital, Ongole) with blacklisting and recovery of amounts paid, and (iv) replace the 7th respondent with department or better hospitals. At hearing, learned counsel for the respondents placed instructions vide letter No./62.U-16014/8/2024-MEDICAL, dated 21.05.2025, showing that Ongole, Bhimavaram, Kadapa and Anantapur are eligible for establishment of 30 bedded ESI hospitals. The Court accordingly directed the 3rd respondent (Director, Insurance Medical Services, Vijayawada) to take necessary steps for setting up 30 bedded ESI hospitals as expeditiously as possible, closed the writ petition with no order as to costs, and closed pending miscellaneous applications as a sequel.

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APHC010401062017

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[3459]

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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI

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(Special Original Jurisdiction)

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THURSDAY, THE ELEVENTH DAY OF DECEMBER TWO THOUSAND AND TWENTY FIVE

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PRESENT

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THE HONOURABLE SMT JUSTICE SUMATHI JAGADAM

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WRIT PETITION NO: 23602/2017

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Between:

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GUDE NAGARAJU,, S/O. SRI CHINA PERAIAH, AGED 29 YEARS, R/O. H.NO.2-1-291/11, ANR NILAYAM, OPP. GANDHI STATUE, GADDELAGUNTA, ONGOLE DISTRICT. ANDHRA PRADESH.

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...PETITIONER

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AND

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EMPLOYEES STATE INSURANCE CORPORATION, REP. BY ITS DIRECTOR GENERAL, PANCHDEEP BHAWAN, COMRADE INDERJEET GUPTA (CIG) MARG, NEW DELHI - 110 002.

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THE JOINT DIRECTOR, INSURANCE MEDICAL SERVICES, VIJAYWADA, ANDHRA PRADESH

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THE DIRECTOR, INSURANCE MEDICAL SERVICES, VIJAYAWADA, ANDHRA PRADESH

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THE DY DIRECTOR, INSURANCE MEDICAL SERVICES, ESIC, VIJAYAWADA, ANDHRA PRADESH

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THE REGIONAL DIRECTOR PG, ESIC, REGIONAL OFFICE, ESI HOSPITAL ROAD, GUNADALA, VIJAYAWADA, ANDHRA PRADESH

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THE SR STATE MEDICAL COMMISSIONER, ESIC, REGIONAL OFFICE 5-9-23, HILL FORT ROAD, ADARSHNAGAR, HYDERABAD500 063.

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SANTI CHILDREN HOSPITAL, REP. BY ITS PROPRIETOR DR. SHANTIPRIYA, SUNDARAYYA BHAVAN ROAD, ONGOLE

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JS,J W.P.No.23602/2017

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DR SARALA INQUIRY OFFICER, DY. CIVIL SURGEON, DIRECTOR OF INSURANCE MEDICAL SERVICES, VIJAWADA, ANDHRA PRADESH.

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...RESPONDENT(S):

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Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased toto issue any writ, order or direction particularly one in the nature of WRIT OF MANDAMUS directing i) to direct ESI Corporation to establish their own hospital/dispensaries at Dist. Hqrs like Ongole and at such other places keeping in view to maximum number of employees/beneficiaries in the town; ii) to direct the ESI Corporation and its Offices to periodically verify the nature of treatment being extended and the medicines supplied to the beneficiaries instead of simply paying crores of Rupees without their being any audit or such other verification; iii) to initiate departmental as well as through ACB or CBI enquiry against the 7th respondent hospital into its acts/omissions besides against all the persons who are harbouring the hospitals like 7th respondent in siphoning public money and by blacklisting such hospitals including 7th respondent, and also to recover amounts paid; iv) to replace the 7th respondent with department hospitals/dispensaries or with other better hospitals/Doctors with reputation and facilities including establishment of referral hospitals for eye diseases, and to pass

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IA NO: 1 OF 2017(WPMP 29186 OF 2017

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Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the official respondents to forthwith consider establishment of departmental dispensaries by ESI corporation or replacing the 7th respondent immediately pending establishment of departmental dispensaries for extending better facilities of the ESI beneficiaries of Ongole Town induding the petitioner pending disposal of the above writ petition and to pass

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Counsel for the Petitioner:

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1.A V S LAXMI

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Counsel for the Respondent(S):

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1.V CH NAIDU

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2.GP FOR MEDICAL HEALTH FW(AP)

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JS,J W.P.No.23602/2017

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The Court made the following ORDER:

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Heard learned counsel for the petitioner as well as learned Standing Counsel appearing for the respondents.

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Learned counsel appearing for the respondents has placed instructions before this Court vide letter No./62.U-16014/8/2024-MEDICAL, dated 21.05.2025, which clearly shows that the locations of Ongole, Bhimavaram, Kadapa and Anantapur are eligible for establishment of 30 bedded ESI hospitals.

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