Metropolis Healthcare Ltd shares on Monday, January 15, gained nearly 3% in morning trade after the company issued a clarification regarding the investing into the fake lab tests at Delhi’s Aam Aadmi Mohalla Clinics.
The company's clarification comes amid the initial probe by the the Directorate of Vigilance into the alleged fraudulent radiology and pathology tests on 'ghost' patients at Delhi’s Mohalla Clinics. The company said that all the samples that were handed over to it were duly tested and reported.
It was alleged that a fake test scam utilised non-existent or false mobile numbers. Seven Aam Aadmi Mohalla Clinics and with two private laboratories, Agilus and Metropolis, were under scrutiny over the alleged scam. Earlier this month, Delhi Lieutenant Governor V K Saxena recommended a CBI investigation into the scam.
In a stock exchange filing, the medical diagnostics company Metropolis Health said it will fully cooperate with any relevant authority if they decide to investigate the matter.
"So far, we have not received any notice from any authority," it added.
The Mumbai-based diagnostic firm said it was awarded the smallest portion of the contract from the Mohalla Clinics project, after being the second-highest bidder and matching the rate of the highest bidder in a public tender process.
"In the current matter being reported in media, the company has followed all due procedures and guidelines as per our contract and all samples that were handed over to us, have been duly tested and reported," Metropolis said.
It further said that billing for testing was strictly done on the basis of the sample received, test performed and reported.
According to the company, interacting with patients and collecting samples was the responsibility of the Mohalla clinic, Metropolis was given the samples with required customer information, which it tested at its labs and handed over the reports to the Mohalla clinic.
From a medical perspective, the only required customer information for an accurate test includes name, age, gender, and in specific instances medical history. Any additional customer information provided by the Mohalla Clinic to the company is at their discretion.
The company said it posted an overall revenue of ₹3.58 crore from the project, spanning from February 2023 to December 2023, constituting less than 0.5% of its consolidated revenue. Of this, ₹1.32 crore were received from the Mohalla clinics, so far.
Due to the project's lack of commercial viability and prolonged delays in receiving payments, Metropolis issued a notice to the state government on December 19, 2023, expressing its inability to continue with the contract.
Metropolis said that it is committed to putting in efforts to recover the outstanding dues, as it has diligently fulfilled the contractual obligations. However, given the current circumstances, the firm believes it is prudent to provision for the receivables in accordance with the company's policy.
At 9.57am, shares or Metropolis were trading 2.14% higher at ₹1,536 apiece on BSE.
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