Madurai: The Madurai Bench of the Madras High Court has set aside the Tamil Nadu government’s order cancelling the organ transplant licence of Cethar Hospital in Tiruchirappalli, citing violation of legal procedures and principles of natural justice. The court observed that the authorities failed to follow due process before taking such a serious action.
Background: Kidney Transplant Racket in Tamil Nadu
Earlier this year, a suspected kidney transplant racket was unearthed in Namakkal, where brokers allegedly targeted poor textile workers and lured them into selling their kidneys for money. The illegal operations were reportedly conducted at two private hospitals — Dhanalakshmi Srinivasan Medical College Hospital in Perambalur and Cethar Hospital in Trichy.
Donors were allegedly admitted as patients, kept for a week, and underwent kidney transplant procedures in exchange for ₹5–10 lakh. The investigation revealed that middlemen created fake familial ties between donors and recipients to bypass legal checks.
Also Read: [Unacceptable, Disappointing: Madras HC Orders SIT Probe in Kidney Transplant Racket]
Government Action and Licence Cancellation
Following the revelations, the Directorate of Medical and Rural Health Services revoked the organ transplant licences of both hospitals, citing submission of forged documents to obtain approvals. The cancellations were made under the Transplantation of Human Organs Act, 1994.
Cethar Hospital subsequently approached the High Court, challenging the state’s decision to cancel its liver and kidney transplant licence.
Court Observations: Violation of Natural Justice
Justice G.R. Swaminathan, hearing the case, noted that the Health Department had not followed the procedure prescribed under Section 16 of the Transplantation of Human Organs and Tissues Act, 1994.
The court highlighted that the hospital was not issued a show-cause notice nor given an opportunity to be heard before the cancellation — both mandatory legal requirements.
The judge remarked that “when law prescribes adopting a particular and specified procedure, it must be followed.” He termed the authority’s action as “a case of rank illegality.”
State’s Argument and Court’s Response
The state government argued that the hospital’s petition was not maintainable since it had already filed an appeal before the government under Section 17 of the Act. The Additional Advocate General also raised concerns over possible public backlash if the hospital’s licence was restored.
Responding sharply, Justice Swaminathan stated:
“Judges have to remain insulated to such probabilities. They cannot worry what people will think. They are answerable only to their conscience.”
Court’s Final Verdict
The Bench ruled that suspension of a licence can occur either as punishment or during pending cancellation proceedings — but both require written justification. Since the hospital was not given due opportunity to defend itself, the cancellation order was declared void.
The judge concluded,
“Since the reputation of the hospital is involved apart from its right to carry on business, a proper enquiry must be conducted. The institution must be given full and fair opportunity to rebut the allegations.”
The court clarified that the earlier suspension order would not revive, as it had merged with the now-quashed cancellation order.
Tags: Madurai High Court, Tamil Nadu Health Department, Cethar Hospital, Organ Transplant Licence, Kidney Transplant Racket, Medical Law India, Healthcare Regulation
