Tue Apr 29 17:46:31 UTC 2025: **Tamil Nadu Medical College Faces Reimbursement Scrutiny Over Unclaimed Outsourcing Funds**
COIMBATORE, Tamil Nadu – April 29, 2025 – A recent Comptroller and Auditor General of India (CAG) report has revealed a significant oversight in the reimbursement claims submitted by the Director of Medical Education (DME) and Dean of the Government Medical College and ESI Hospital in Coimbatore. The audit found that ₹12.34 crore (approximately $1.5 million USD) in outsourcing charges for the hospital were excluded from reimbursement claims submitted to the Employees’ State Insurance Corporation (ESIC) for the fiscal years 2016-17 to 2020-21.
The hospital, transferred to the Tamil Nadu government in 2016 under a Memorandum of Understanding (MoU) with ESIC, is eligible for reimbursement of operational expenses. However, the Dean only requested audit certification for expenditure in December 2021, significantly delaying the process. While a substantial reimbursement of ₹170.91 crore was eventually claimed and partially received (₹113.91 crore), the missing ₹12.34 crore in outsourcing costs was not included.
The CAG report criticizes both the Dean for failing to include the outsourcing charges and the DME for not exercising due diligence before forwarding the claim to ESIC. This omission resulted in the Tamil Nadu state government bearing an additional financial burden. The report notes that despite repeated referrals to the government (August 2023, September 2023, February 2024), no response had been received by March 2024. The matter is currently under review.
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