The scheme was meant to provide treatment to the poor in rural areas who cannot afford expensive surgery. As per the scheme, a committee is appointed in consultation with the district civil surgeon, which recommends patients to various public hospitals. These hospitals cannot refuse to provide the required medical treatment.

A petition challenging the scheme was filed by an association of public hospitals, including ones from Mumbai. It stated that the Bombay Public Trust Act makes it obligatory on the part of every hospital to allot certain beds to the financially weaker sections.

It was argued that there was no need to burden hospitals with the scheme when they are already doing their duty. The hospitals also demanded the right to discretion while admitting the referred patients. Chief Justice M B Shah and F I Rebello had thereafter stayed the scheme. The state government then filed a Special Leave Petition in the apex court, which vacated the stay today.