Agilus fully provides for Rs 18.871 crore in Delhi government dues

Agilus Diagnostics Limited fully provided Rs 18.871 crore of receivables from Delhi Government's Directorate General of Health Services as at September 30, 2026, after prolonged payment delays under an expired Mohalla Clinic diagnostics agreement; a Delhi High Court payment case and investigation-related proceedings remained unresolved.

Why did Agilus provide for Rs 18.871 crore of Delhi government dues?

Agilus fully provided Rs 18.871 crore because recovery of the outstanding dues had been delayed for a prolonged period. The amount was due from the Directorate General of Health Services, Delhi Government, for diagnostic services under an agreement entered into in 2023 that expired on June 30, 2025.

The provision was made during preceding financial years, rather than being newly recognised in the quarter ended September 30, 2026. As a result, the entire Rs 18.871 crore receivable disclosed at that reporting date was covered by a provision, although Agilus continued its efforts to recover payment.

The Rs 18.871 crore receivable was greater than the Rs 2.791 crore of revenue Agilus recognised from the arrangement in the year ended March 31, 2026. The filing does not provide a breakdown of when the billed amount arose, but states that the balance remained unpaid after the service agreement ended.

What was Agilus's Delhi Mohalla Clinic diagnostics agreement?

Agilus had a two-year agreement with the Directorate General of Health Services to conduct diagnostic tests for patients at Aam Aadmi Mohalla Clinics. Under the agreement and the standard operating procedure for patient-related processes, clinic staff had sole responsibility for interacting with patients and collecting samples.

Agilus ceased rendering services to the Directorate General of Health Services after the agreement expired on June 30, 2025. That allocation of responsibilities is part of the disclosure because the subsequent notices concerned alleged anomalies in tests conducted at Mohalla Clinics, while Agilus described its role as conducting diagnostic tests.

For the year ended March 31, 2026, Agilus recognised Rs 2.791 crore of revenue under the agreement. The Rs 18.871 crore receivable reported at September 30, 2026 therefore concerned payment for services already rendered, rather than a renewal or continuation of the contract.

What is the status of Agilus's Delhi High Court payment case?

Agilus's petition for payment remains pending before the Delhi High Court after it filed a writ petition on August 3, 2024 seeking directions for payment of admitted pathology-services outstanding. Agilus said it initiated the case after continued non-payment despite communications seeking release of its dues.

The Directorate General of Health Services filed a counter-affidavit alleging that Agilus had failed to fulfil certain obligations under the agreement. Agilus filed a rejoinder affidavit disputing those allegations, and the filing says the matter had not been adjudicated as at September 30, 2026.

Alongside the court process, Agilus said it sent multiple communications seeking payment, requested a reconciliation meeting and sought return of original performance bank guarantees. The guarantees were Rs 75 lakh per cluster and aggregated Rs 1.50 crore, separate from the Rs 18.871 crore receivable for services.

Is Agilus involved in the CBI inquiry into Mohalla Clinic tests?

Agilus is cooperating with requests for documents and information connected with an investigation into alleged anomalies in diagnostic tests at Aam Aadmi Mohalla Clinics. It received an initial notice from the Anti-Corruption Branch of the Government of National Capital Territory of Delhi on January 18, 2024.

On the same date, the Directorate General of Health Services told Agilus that it was carrying out a detailed scrutiny and verification exercise, following which payments found legitimately due would be released. The filing does not say that this review had concluded or that any outstanding amount had been released by September 30, 2026.

The Central Bureau of Investigation, Anti-Corruption Branch, New Delhi sought documents or information on May 10, 2024, September 24, 2024 and September 2, 2025. Agilus said it submitted the requested material on time and had received no further communication from the Central Bureau of Investigation up to the November 5, 2026 filing date.

What financial outcome has Agilus disclosed from the dispute?

Agilus has disclosed a full Rs 18.871 crore provision, but it has not quantified any additional financial consequence from the pending proceedings. The provision addresses the prolonged delay in recovering the receivable, while the filing states that the ultimate outcome and any consequential impact cannot be determined with certainty pending completion of the proceedings.

Agilus said it had fully cooperated with the relevant authorities and provided documents and information requested in connection with the notices. Its position in communications with the Directorate General of Health Services is that it discharged its obligations under the agreement for samples processed and is entitled to payment of the outstanding amounts.

The disclosure separates recovery of the fully provided Rs 18.871 crore receivable from the unresolved investigation-related proceedings. Neither the Delhi High Court payment case nor the authority's scrutiny had produced a disclosed outcome by the September 30, 2026 reporting date.

Conclusion

Agilus has recognised the risk associated with delayed recovery by fully providing for the Rs 18.871 crore due from the Delhi health authority in preceding financial years. The agreement ended on June 30, 2025, but payment remains in dispute, with Agilus contesting the authority's allegations and maintaining that it performed its obligations for processed samples.

The next disclosed matters to watch are the Delhi High Court's adjudication of the August 3, 2024 writ petition, any result of the authority's scrutiny, and the return of Rs 1.50 crore of performance bank guarantees. Agilus also reported no further Central Bureau of Investigation communication after September 2, 2025, while stating that the ultimate outcome of the proceedings remains uncertain.