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Punjab Rehab Racket: Babus Make a Killing in Cash-for-License Scam

In Part 2 of this investigation, we see to what extent Punjab state govt officials are involved in the rehab racket.

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Raj Singh* claims that he paid a bribe of Rs 1.5 lakh to renew a license, which according to the state rules should not have cost him more than Rs 500. Singh runs a private rehabilitation centre in Muktsar, 280 kilometers west of Punjab’s capital Chandigarh, and was able to renew his license within 20 days.

For the 3.2 lakh drug addicts in Punjab, there are only 1,100 beds in government-operated rehabilitation centers. This is where private rehab centers come into the picture. Perceived to be more effective for treatment and ensuring anonymity, private clinics are preferred despite the stark contrast in fees when compared to government-run centres. While government rehabs charge Rs 1,500 per month, private clinics levy up to Rs 15,000 a month.

In Part 1 of The Quint’s investigation, we found that at least 20 of these private rehab centers run unlicensed, appoint bogus counselors and run in cahoots with government agents who tip them off about inspections.

In Part 2, we find out how and to what extent Punjab state government officials are involved in this rehab racket.

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Snapshot

Running Private Drug Rehab Centres the Clean Way

Before we decode how the corruption plays out, let’s take a quick look at how these private drug rehab centre licenses are supposed to be issued. The entire process should take about three months.

  • Licenses have to be renewed before they expire, otherwise the centre is ‘deemed to be closed’.
  • A demand draft of Rs 500 along with the renewal application needs to be sent to Director of Health Services (DHS) and Director of Social Security (DSS) in Chandigarh.
  • After the office receives the application, an inspection note is issued by the department of health.
  • A six-member inspection team that includes a civil surgeon and the District Commissioner, visits the centre and ensures minimum standards of staff and infrastructure are being met.
  • After this, the licensing authority which consists of the DHS and the DSS signs off on the application.

To investigate Raj Singh’s claims of ‘bribes for rehab licenses’, we travelled to Chandigarh to scrutinize the allegation.

A Hostile Senior Official

Our first stop was the Principal Secretary to the Health Minister’s office, Satish Chandra, who refused to divulge anything over the bribery allegations against departments under him. Instead, he went the shoot-the-messenger route.

“This is not your job,” he told The Quint. “Is it your work to see who is paying bribe and who isn’t? Aapka kya kaam hai isse? Please leave my office, my office is not meant for all this. Are you an activist or a press reporter?”

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How Money Buys You a Rehab License

The Quint spoke to two other Punjab state government officials – a senior and a junior officer, involved in the licensing process for the health department. Both opened up on the rampant corruption in the offices on grounds of anonymity.

They said, once an application is sent from the district to Chandigarh for approval, it is received by a senior assistant clerk. It then moves hands to the program officer and then, the Deputy Director. These three are merely “forwarding agencies” and have no authority to comment, advise or recommend on the merits of the application.

The Deputy Director forwards the application to the licensing authority – the Director of Health Services (DHS) and Director of Social Security (DSS). Both these IAS positions are considered “retirement posts”, so no one stays in charge for more than 12-18 months. There is no set rule as to who can sign off on it first.

In response to our queries – listing problems from 2016 onwards – our two sources agreed that while the Director of Social Services (DSS) had passed the files without raising any objections, there were “delays” in signing of the files from the office of the Director of Health Services.

“The officer-in-charge would leverage money for signing the file,” the sources told us. “The clerk, used as a pawn, fronts the demand for money in lieu of the signature.” As a result, they are frequently shuffled.

Both officials, however, also told us that this has stopped since the current Director of Health Services (DHS), Jaspal Kaur took charge in January 2018.

While speaking to The Quint on the allegations of corruption in her office, Kaur said, "I have a very transparent method of functioning and have not delayed signing licenses which have come in after I have taken charge."

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Health Ministry Answers The Quint's Queries

The Quint sent questions to the office of Brahm Mahindra, Punjab's Health Minister. The response was prompt and telling.

How many internal investigations against corruption have been conducted in the matters of issuing and renewing licenses for private rehabilitation and counselling centres in 2016, 2017 and 2018?

Three

How many internal investigations are currently underway?

Nil

Name the officials found guilty in the investigation.

All inquiries have been dropped because complainant did not appear for three consecutive hearings.

What were the actions taken against officials found guilty of corruption?

Any action can be taken only if charges/allegations are proven.

While we had heard of only one allegation from Muktsar, the ministry confirmed there were at least three official complaints of corruption. However, why the complainants failed to appear at the hearings remains unknown, although the offices they complained against are powerful enough to scrap licenses.

The Quint asked the current DHS, Jaspal Kaur, if any of the three complaints included people from her office. Kaur said, "All three allegations are from before I assumed office in January 2018. I have gone through the files, the complaints have not named a DHS but have named clerical staff. They were involved in asking money."

Jaspal Kaur’s response confirms how clerks are central to the cycle of corruption.

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New Rules for Private Rehab Centres, Soon

The Health Ministry added that the entire process of issuing licenses is going to be revamped under the Mental Health Care Act 2017.

“A web portal has been developed (...) so that there will be complete transparency in the process. Minimum standards of care for all mental health establishments will be developed by a team of experts. Stringent laws have been made under the act so that the private deaddiction and the rehab centres don't play with the lives of the drug addicts,” they told The Quint.

But here’s the problem – rules and regulations for the rehabilitation of drug addicts in Punjab already exist. They could be re-looked at, but their implementation on ground is what’s failing the lakhs of families struggling to rid their loved ones of addiction.

(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)

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