Gowda tried to make part payment with demonetised Rs 500 and Rs 1,000 notes yesterday while clearing the bills for the treatment of his brother Bhaskar Gowda, who died of jaundice yesterday, sources at the hospital and officials said.
However, the hospital made it plain to the Minister that it cannot take the old notes, which led to an upset Gowda questioning them on their refusal.
Gowda, who is the Minister for Statistics and Programme Implementation, later settled the bill through cheque following which the body was later handed over to him.
The minister reportedly said that scrapped notes were not accepted in spite of government guidelines and wondered, "In such a situation, what would be the condition of a common man."
Gowda's younger brother Bhaskar, aged 56, was practising Law before switching over to farming.
Officials said that private hospitals here had stated in writing at an official meeting here recently that the order to accept demonetised currency was applicable only to government hospitals and not for them, due to which they cannot accept scrapped notes.