Panel flags inconsistent accounting practices in health regulatory bodies

Panel highlights inconsistent accounting in health regulatory bodies, urging improved transparency and oversight in revenue generation practices.

Financial reporting and legislative oversight mechanisms among apex health regulatory bodies have been inconsistent, the Department-related Parliamentary Standing Committee on Health and Family Welfare said in its 172nd report on demands for grants 2026-27 presented to Parliament on March 18, 2026.

The Committee said there has been a substantial increase in revenue generated by regulatory bodies, such as National Medical Commission, rising from ₹125.36 crore in 2022-23 to ₹406.17 crore in 2024-25, largely through application, inspection and licensing fees following the revision of norms.

The Health Department has said that the accounts are audited by the Comptroller and Auditor General and laid before Parliament. But the Committee recommended that the Department must ensure preparation and publication of more detailed, consolidated annual financial reports and indicate the source-wise revenue generation and head-wise utilisation of funds by all regulatory bodies under its purview and strengthen transparency, accountability and parliamentary oversight.

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The Committee observed that significant amounts were collected through regulatory and licensing fees, including those processed through the Bharatkosh portal by the Central Drugs Standard Control Organization. It said the Department must evolve a uniform reporting and disclosure framework for all health sector regulatory bodies to periodically report revenue receipts, security deposits and their utilisation, particularly in the context of increased application fees for medical colleges.

It said that the Pharmacy Council of India generated more than ₹300 crore annually through Pharmacy Education Regulatory Charges but bypassed parliamentary presentation. Similarly, the Dental Council of India retains its annual revenue of approximately ₹36 crore entirely as internal receipts under the provisions of the Dentists Act, 1948.