Moseneke said the rights of Life Esidimeni patients had clearly been violated.
He ordered government to pay the families within three months.
Moseneke made this announcement on the last day of the
Life Esidimeni Arbitration hearing held in Parktown, north of Joburg on Monday.
He said R20 000 is for funeral cost, R180 000 for psychological trauma suffered by the families and R1m for a relief.
He added: “Counselling must be provided immediately unless declined by families.”
This comes after the State argued that it only wanted to pay for damages amounting to R200 000.
Moseneke rejected this.
He said there was no doubt that constitutional rights were bridged in this regard.
Over 1700 mentally-ill patients were moved to ill-equipped NGOs after the Gauteng Department of Health terminated its contract with the Life Esidimeni Group.
This resulted into the death of 144 patients because of dehydration and hunger according to the health ombudsman report.
“Besides the reasons of the termination being untruthful it was also irrational,” said Moseneke.
He said the evidence provided before the hearing by the former Health MEC, Qedani Mahlangu, the Head of Department, Dr Barney Selebano and the former head of mental unit, Dr Makgabo Manamela were irrational and arrogance of public power.
“All we can hope for is that one day the true reason for the termination of the contract will see the day."
