Supreme Court Suggests CAG Inquiry Into Fake Claims For COVID Death Compensation

"We can entrust the inquiry with the Accountant General's Office."

A Bench comprising Justices M.R. Shah and B.V. Nagarathna was disappointed to note that a "pious exercise" of disbursing ex-gratia compensation to family members who have lost their dear ones to COVID, has been taken advantage of by a few. It further indicated that if some Government officers are involved in manufacturing the fake documents and approving the fake claims, it would be a serious affair and would require an urgent probe.

"We never imagined that this can be misused also. This is a very pious work and we thought that our morality has not gone so down that in this also there will be some fake claims…If some officers are involved that it is very serious."

Advocate, Mr. Gaurav Bansal, the petition apprised the Bench that Section 52 of the Disaster Management Act, 2005 can be invoked to tackle the issue of fake claims.

The Bench was of the view that for the same a complaint has to be lodged, but until and unless one knows that it is a fake claim it would be impossible to register a complaint. Therefore, an inquiry is imperative.

"For that someone has to file a complaint. From where do we find these are the fake claims. Someone has to inquire."

Solicitor General of India, Mr. Tushar Mehta assured the Bench that he would file an affidavit addressing the issue of fake claims.

Further, addressing the issue of fixing a time limit for inviting applications for ex-gratia compensation, Mr. Mehta reiterated his suggestions made on the last occasion.

"As respectfully submitted on the last occasion, there are two fold suggestion:

First, your lordships may consider fixing some final limit. Whoever now wants to apply, say they apply within 4 weeks. And, God forbid, there may not be any further death, but if there is any death now, 4 weeks from the death, so that it is not an endless process."

The Bench stated, "We asked you to file an appropriate application…That is why the matter was adjourned to today."

Mr. Mehta undertook to file the affidavit by the next day.

"I did not understand it that way. I undertake to file it tomorrow. Kindly, milords have it the day after."

Accordingly, adjourning the matter to 21.03.2022 (next Monday), the Bench recorded in the order as under -

"At the request of the Ld. Solicitor General, so as to enable the UoI to file an appropriate application for further direction, on limiting the time period to invite applications for ex-gratia payment and seeking further direction on fake claims made and granted in some of the States."

[Case Title: Gaurav Bansal v. Union of India 2022 LiveLaw (SC) 70]