You are an appellate authority in one of the government departments. Inter-alia the many functions it performs, the department examines the accounts of those super- specialty hospitals, which were granted land free of cost by the government in lieu of treating poor patients free. The hospital must treat 25% of its patients free as per the rules. In the previous year it treated only 18% free. As per rules an amount equivalent to the average treatment cost of the 7% patient was to be deposited in a fund. This fund was to be used in the next year to treat poor patients over and above 25%, free of cost. The hospital had a failed to do this also. During the scrutiny of accounts it had presented the plea that being in a posh area of the city, lesser number of poor patients had approached it. The non deposition of money (7% of treatment cost) was an oversight. Your junior authorities have levied a penalty of Rs.5 lakh as per rules for this failure. The hospital administration has approached you in appeal. The rules permit you to reduce/ waive/ enhance the penalty. You happen to know them personally and they have helped you in getting timely treatment of your relatives on a couple of occasions. In such a situation you would

2.5 marks for Option (a) 1.5 1marks for Option (b) 1 mark for Option (c) 0 marks for Option (d) Rationale/Reasoning In the circumstances given in the question, no option can be said to absolutely wrong, as the questions states that rules permit you to confirm, waive or enhance the penalty. What the question wants to asses is your administrative approach to a given problem. (a) Option ‘a’ is the best course as it shows you are firm in discharge of duties, but polite in your personal conduct. Levy of penalty is appropriate as per rules. Besides, a big super specialty hospital cannot take the plea of oversight in the discharge of its legal or rules-based obligations. (b) Reducing penalty shows that you are considerate and ready to give the hospital a second chance. However, bigger institutions and strong entities need to be more observant of rules as they are more capable of complying with them and have a far greater responsibility to do it. As such reducing penalty would not be appropriate. (c) & (d) While giving a complete waiver (Option c) would be incorrect for reasons mentioned above, Option (d) would be too harsh a punishment. Besides, admonishing would be an incorrect thing to do conduct-wise. Principles/Value Tested Firmness of official conduct and politeness of personal behavior Taking appropriate/ right administrative decisions