New Delhi: In a major legal and administrative setback for Novman Ahmad, the Delhi High Court has effectively cleared the path for his removal from service at Hospital Services Consultancy Corporation Limited (HSCC), ending a prolonged jurisdictional dispute between the PSU chief and the administrative ministry.
The ruling restores the authority of the Ministry of Housing and Urban Affairs over the matter and marks the end of Ahmad’s tenure nearly nine years before his scheduled superannuation in 2035.
HSCC is a Mini Ratna Category-I Central Public Sector Enterprise and a wholly owned subsidiary of NBCC (India) Limited.
High Court Sets Aside CAT Intervention
The dispute escalated after Ahmad approached the Central Administrative Tribunal seeking a stay on a February 2, 2026 order issued by MoHUA.
That ministry order had:
• Withdrawn his administrative powers
• Transferred those powers to the Chairperson of NBCC
• Empowered the NBCC Chairperson to act in the capacity of Chairman of HSCC
However, during hearings on March 13, the Delhi High Court held that CAT had exceeded jurisdiction in granting interim relief.
The court observed that the dispute did not fall within the scope of “service matters” under Section 14 of the Administrative Tribunals Act, 1985, making CAT’s intervention legally unsustainable.
By declaring CAT’s stay ineffective, the High Court restored the ministry’s executive decision.
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Jurisdictional Battle Ends in Ministry’s Favour
The legal contest had become a high-stakes test of whether PSU top-level leadership disputes involving administrative control could be treated as service matters under tribunal jurisdiction.
The High Court’s interpretation now firmly places such executive intervention under ministry authority rather than tribunal protection.
This effectively means MoHUA’s decision to curtail Ahmad’s powers and proceed with administrative action stands legally protected unless overturned in final proceedings.
Tenure Cut Short Two Years Before Scheduled Completion
The timing of Ahmad’s exit is especially significant.
He was originally appointed for a five-year tenure ending February 23, 2028.
With the latest developments:
• His tenure ends nearly two years early
• He loses office nine years before retirement
• His scheduled superannuation date was May 31, 2035
This makes the removal one of the more notable premature exits involving a serving PSU chief in recent years.
NBCC Board Recommendation Led to Ministry Action
According to administrative sources, the ministry’s decision to terminate Ahmad’s services followed a formal recommendation from the NBCC Board.
As HSCC is a wholly owned subsidiary of NBCC, the parent PSU’s board recommendation became a critical trigger for ministry intervention.
This sequence reflects increasing direct oversight by the ministry in subsidiary governance matters.
Administrative Transition at HSCC Now Formalised
After the High Court listed the matter for final disposal on March 19, the administrative transition within HSCC has effectively moved into implementation mode.
The transfer of powers to NBCC leadership is now being treated as operationally settled.
Officials indicate that the ministry’s control over HSCC management has been fully restored.
Departmental Enquiry May Follow
Beyond removal from office, Ahmad may face further scrutiny.
Sources indicate that the ministry is considering a departmental enquiry against him.
If initiated, the enquiry could examine administrative decisions taken during his tenure and any issues flagged during internal review.
Wider Signal for PSU Governance
The development is being viewed by sector observers as a strong signal of tighter oversight by MoHUA over public sector subsidiaries under its administrative domain.
It also highlights that senior PSU executives may face closer accountability where parent board recommendations and ministry intervention converge.
About HSCC
HSCC plays a major role in public sector infrastructure related to:
• Hospital construction
• Medical institutional consultancy
• Health sector procurement
• Government healthcare project implementation
It has been involved in several major national health infrastructure projects.
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