In a dramatic shift within Delhi’s public healthcare system, the city’s Mohalla Clinics, a flagship initiative launched by the Aam Aadmi Party (AAP) during its tenure, are facing a closure. This move comes as the BJP-led administration rolls out a new healthcare initiative—Ayushman Arogya Mandirs (AAMs).
While the government claims these new centres will offer upgraded infrastructure and more comprehensive services, the abrupt replacement of Mohalla Clinics has sparked concerns regarding the true intent behind the decision, the potential effectiveness of AAMs, and whether healthcare is being politicised.
Rise and Stall of Mohalla Clinics
When the AAP government took charge of Delhi in 2015, it introduced the Mohalla Clinic initiative as a bold step toward providing affordable, accessible healthcare to urban communities. The idea was to establish neighbourhood clinics that offered free consultations, medicines, diagnostics, and basic medical services. With resident doctors, lab assistants, and IT technicians managing patient information, the clinics quickly became a symbol of success in urban primary healthcare.
These clinics quickly earned praise both nationally and internationally for their accessibility, affordability, and effectiveness. With free consultations, diagnostics, and medicines, they were seen as a model for urban primary healthcare.
“India’s great export to the World”; this is what the Mohalla Clinics’ website had to say about the scheme.
The initiative was also praised by Former UN Secretary-General Kofi Annan who called the project “a model for all Indian states embarking on the journey to universal health care.” What visibly changed after the introduction of Mohalla Clinics was the political discourse around public health.
The initiative brought health services to the fore of political agendas, with number of states expressing interest in adopting the concept (or a variant), like ‘Namma’ clinics by the previous BJP regime in Karnataka. By 2022, over 553 Mohalla Clinics had been set up, many operating in rented premises. These clinics served lakhs of patients each month, particularly benefiting daily wage workers, women and the elderly.
Despite the acclaim, the initiative was not without controversy. Ever since the power tussle between the Delhi government and the Lieutenant Governor intensified, the expansion of Mohalla Clinics slowed. Officials cited bureaucratic delays, lack of permissions, and pending files as reasons for stagnation. Over time, several clinics faced funding cuts and eviction notices due to unpaid rents or regulatory technicalities. In 2024, the Central Bureau of Investigation (CBI) launched a probe into alleged irregularities, accusing the scheme of financial misappropriation and procedural violations.
The primary accusation involves irregularities in the availability of medical staff, shoddy operations, reluctance to audit and fake laboratory tests at these clinics, leading to suspicions of kickbacks.
The CBI probe was led by a report of the Anti-Corruption Bureau in August 2023, where it came to the notice of the Department of Health & Family Welfare that doctors of Mohalla Clinics posted in Shahdara, North-East & South-West districts resorted to the unethical practice of marking their attendance fraudulently through pre-recorded videos while they remained absent.
The patients coming to the clinics were consulted and medicines were disbursed to them in the duration of the absence of doctors by the empanelled staff who were not competent and not authorised to do so.
In September 2023, immediate action was taken against these doctors and they were de-empanelled from the Delhi government while FIRs were also registered against them.
However, this irregularity prompted the department to initiate a preliminary probe after directions from the vigilance department over suspicion of a nexus running behind the curtains involving the private laboratories where the diagnostic & radiology tests of the clinics have been outsourced by the city government.
After taking the reigns of Delhi from AAP, the BJP government announced the immediate closure of approximately 250 Mohalla Clinics, citing financial irregularities and misuse of rent expenses.
The govt stated that these clinics were largely non-functional and incurred unnecessary rental costs, asserting that the government would focus on establishing healthcare facilities on its own land to eliminate financial mismanagement. As per government, out of 553 Mohalla Clinics, only 11 Mohalla Clinics are in government buildings. The decision sparked criticism from AAP leaders, who argued that the move would adversely affect thousands of daily patients relying on these neighbourhood health centres.
Emergence of AAMs
Now, the Delhi government, under Lieutenant Governor VK Saxena and with administrative control effectively aligned with the BJP-led Centre, is championing Ayushman Arogya Mandirs. Part of the broader Ayushman Bharat initiative, AAMs are meant to offer a more integrated health package combining preventive, promotive, and curative care.
The implementation of all modules of Ayushman Bharat including the insurance scheme and development of AAMs under the Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) was on the top priority of the BJP government of its 100-days agenda. Centre has allocated Delhi `2,406 crore to set up public healthcare units, critical care blocks, integrated labs and hospitals under this.
The Health Department initially laid out a plan to upgrade existing Mohalla Clinics into AAMs with a target to establish 1,139 such centres, including the conversion of 553 existing Mohalla Clinics and the construction of 413 new ones. Furthermore, all eleven districts in Delhi will have 1 model Ayushman Arogya Mandir each and the initiative will extend to dispensaries under both the Delhi government and the Municipal Corporation of Delhi (MCD).
As of May, the government has identified 964 sites for establishing Ayushman Arogya Mandir sub-centres under the Prime Minister Ayushman Bharat Health Infrastructure Mission (PM-ABHIM). Of these, 255 will be new permanent facilities replacing temporary Mohalla Clinics. The rest include government or PSU-owned sites, existing municipal sub-centres and functional sub-centres to be upgraded during Phase I.
Now, as the Delhi government’s 100-day action plan draws to a close, preparations are in full swing to inaugurate 33 new Ayushman Arogya Mandirs (AAMs) across the capital.
Chief Minister Rekha Gupta has directed officials to complete all civil and medical infrastructure works by May 27, ahead of the official launch scheduled for May 31—the final day of the government’s 100-day agenda. According to official data, the South-West district will get the highest number of new centres, with six facilities nearing completion.
Of the total 33 centres, 20 are being constructed in Public Works Department (PWD) buildings, including the Delhi Secretariat, while 11 will function from Municipal Corporation of Delhi (MCD) premises, and two in New Delhi Municipal Council (NDMC) buildings.
An official from the Health Department confirmed that work across all 33 sites is in its final stages. “Basic civil work is complete, and medical equipment has been procured.
Installation will be finished before the deadline,” the official added.
Shift from Mohalla Clinics to AAM
The AAMs are designed to provide comprehensive healthcare services. Each AAM is expected to offer 12 essential service packages, aiming to install approximately 15 centres in each assembly constituency to enhance local healthcare access.
Additionally, the AAMs will feature video conferencing facilities, enabling patients to consult doctors at larger government hospitals online. The existing scheme for MRI and CT scans will continue, allowing patients to access these services at private centres.
Under this initiative, screening of common non-communicable diseases (NCDs), including cervical, breast and oral cancer, will be an integral part of service delivery. Additionally, 161 types of medicines, 12 types of medical tests and all vaccinations for pregnant women and newborns will be provided free of cost.
Officials are of the view that these new centres are better equipped and more systematically managed. “Unlike Mohalla Clinics that functioned out of rented rooms with inconsistent standards, the AAMs have uniform infrastructure, electronic recordkeeping and integration with national health programmes,” said a senior health department official.
Challenges Ahead
The government has decided that following the setting up of Ayushman Arogya Mandirs at newly identified locations, Mohalla Clinics in the vicinity should be withdrawn if the former can cater to the same population of that particular area.
According to minutes of meeting held earlier this year, the government also plans to de-empanel staff employed with the Mohalla Clinics as they work on daily wages model where number of patients catered determine their monthly salary. However, the BJP government plans to enroll staff of Ayushman Aarogya Mandirs on a fixed salary contract under the National Health Mission's guidelines.
"It was discussed that the extension and empanelment of existing doctors and paramedical staff shall continue under existing terms and conditions for a period of one year, or until the new manpower for Ayushman Arogya Mandir is appointed to serve areas currently covered by Mohalla Clinics-whichever is earlier. Further, sufficient notice for de-empanelment should be served to the empanelled Human Resource of the Mohalla Clinic as per terms and conditions of empanelment," the notice read.
The move prompted a political backlash from the opposition AAP who Delhi unit's chief Saurabh Bharadwaj alleged that the government plans to shut down most Mohalla Clinics in Delhi. He claimed that once an Aarogya Mandir is set up in an area, the corresponding
Mohalla Clinic and its staff would be phased out. Bharadwaj accused the BJP of breaking pre-election promises. “Before the elections, PM Narendra Modi and other BJP leaders assured the public that no welfare scheme started under the AAP government—whether free electricity, 20,000 litres of water, or Mohalla Clinics—would be discontinued. The move will impact around 2,000 staffers and more than 500 doctors attached,” he said.
However, CM Rekha Gupta responded that doctors and staffers of Mohalla Clinics would be absorbed in the upcoming AAMs.
Delhi Health Minister Pankaj Singh clarified that the contracts of healthcare staff at Mohalla Clinics would be extended for one year or until the Aarogya Mandirs become operational—whichever comes earlier. Singh said a proper hiring process will be started for doctors and other staff where all eligible candidates can apply.
"The government will not do injustice to anyone and all eligible staff will be retained,” he added.
Jury Is Out
The transition from Mohalla Clinics to AAMs has been met with mixed reactions. While the government emphasises the enhanced infrastructure and integrated services of AAMs, some critics argue that the abrupt dismantling of Mohalla Clinics reflects political motivations rather than genuine healthcare reform.
Meanwhile, a few also lauded the initiative as it promises enhanced facilities. "In the name of ad hocism and building political legacies, the AAP introduced Mohalla Clinics—an innovative but incomplete model of urban primary healthcare. While the intention was commendable, the implementation prioritised cost-saving measures, such as hiring doctors and staff on a per-patient basis, rather than investing in sustainable infrastructure.
Consequently, the broader healthcare system—especially existing dispensaries and hospitals—was neglected, contributing to Delhi’s underwhelming health indicators," said a noted public health expert working at a Delhi government-run hospital on the condition of anonymity.
"Now, the BJP government appears to be following a similar path with its Arogya Mandir initiative. While the model looks promising on paper, especially with the inclusion of screening for non-communicable diseases, it too lacks a clear vision for strengthening secondary and tertiary care systems. Without parallel investment in hospital infra and comprehensive public health planning, such initiatives risk becoming more about political branding than genuine healthcare reform," the expert added.