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Federal Court imposes $2.2M penalty after NDIS participant’s death

Judge hits hammer, close up

NDIS Quality and Safeguards Commissioner Louise Glanville today acknowledged the Federal Court’s decision to impose a record $2.2 million penalty against Aurora Community Care Pty Ltd (Aurora) over the tragic death of NDIS participant Ankur Gupta. The ruling marks the highest civil penalty ever handed down to an NDIS provider, underscoring the serious consequences of failing to meet care and safety obligations under the NDIS.

Mr Gupta, an NDIS participant with an intellectual disability, was killed after being struck by a car on a motorway near his Supported Independent Living home in Eagleby, Queensland.

The Federal Court found Mr Gupta had been put at serious risk of harm by Aurora and its support workers, leading to his death.

Aurora was responsible for providing full-time 2-on-1 supports (a staffing arrangement where two support workers are assigned to one participant) to Mr Gupta and knew he was at serious risk of wandering.

At the time Mr Gupta left his home, he was not being monitored or supervised, with one support worker asleep and the other in an adjacent room.

The Court also found Aurora contravened the National Disability Insurance Scheme Act 2013 by failing to:

  • report to the NDIS Quality and Safeguards Commission (NDIS Commission) the use of behaviour-controlling medication given to Mr Gupta
  • report to the NDIS Commission the withholding of Mr Gupta’s access to television and Pepsi, which amounted to a long-term negative trigger for Mr Gupta’s behaviour
  • develop suitable longer-term behaviour support plans for Mr Gupta.

Aurora’s sole Director Mohamed Issak placed Aurora into voluntary liquidation in January 2024, shortly after the NDIS Commission commenced the proceeding.

The NDIS Commission obtained permission from the Court to continue the proceeding. The proceeding was not defended by Aurora’s appointed liquidator, who agreed to not finalise the winding up pending the outcome.

In delivering the Court’s judgment on liability and penalty, Justice Abraham said:  “Mr Gupta’s parents placed him in Aurora’s care.  … They trusted that Aurora would provide the supervision, support and safe environment their son needed. Aurora did not provide those things.

“Although [Aurora] is in liquidation, the penalty to be imposed serves to recognise the gravity of the contraventions and fulfils, inter alia, the important role of general deterrence in the penalty process. … These contraventions … are of the utmost seriousness. Aurora has over an extended period displayed an ongoing and flagrant disregard for its legal obligations as a NDIS provider.”

Commissioner Glanville said the NDIS Commission will take strong action against providers that fail to provide safe NDIS services to people with disability.

“Mr Gupta’s death is a tragedy that could have been prevented had appropriate procedures been in place,” Commissioner Glanville said.

“Aurora’s placement into liquidation has not stopped us from seeing the proceeding through to judgment.

“The NDIS Commission will hold to account NDIS providers that fail to deliver safe services.

“This legal action and the significant penalty imposed by the Court send a strong deterrent message to all NDIS providers to take their obligations seriously.”

The Commissioner also emphasised that restrictive practices should only ever be used as a last resort in line with a participant’s authorised behaviour support plan, and that any unauthorised use must be reported to the NDIS Commission.

“Failure to report restrictive practices, or to have required behaviour support plans in place, is a serious contravention that puts participants at risk and will not be tolerated,” Commissioner Glanville said.

A copy of the judgment is available at on the Federal Court website.

The NDIS Commission banned Mr Issak from being involved in certain NDIS activities from November 2024 for 10 years.

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