"The KPC Medical College and Hospital, Jadavpur, with which the government has signed an agreement to develop the Shillong Medical College and Hospital, is a firm with lots of dubious background," NPP legislator James K Sangma said during Question Hour in the Assembly.
Asking whether the government was aware of the firm's background, Sangma said, "KPC has more than 20 law suits in the superior court of the United States. These law suits are mostly pertaining to frauds and cheatings."
Stating that the government had failed to conduct a background check of the firm, Sangma asked whether the government would consider cancelling the agreement signed with the firm if it was found to be dubious.
Reacting to this, the minister said, "So far the government has no reason for cancellation of the agreement, but action will only be taken after obtaining the facts."
He said the concessionaires' agreement had been signed with KPC Medical College and Hospital for development of a hospital and medical college with an estimated cost of Rs 250 crore under PPP arrangement at Ried Provincial Chest Hospital, Shillong.