DDA consent not required for EHIRC deal: Fortis

Fortis Healthcare, a Ranbaxy group company, has said its acquisition of Escorts Heart Institute and Research Centre (EHIRC) from Rajan Nanda's Escorts did not require "the prior consent of Delhi Development Authority (DDA)".

Harpal Singh, chairman of Fortis Healthcare, said the institute was converted from a charitable to a non-charitable trust as per law, and its subsequent conversion to a company also fulfilled legal requirements.

"In both cases, legal opinion confirms that there was no transfer of lease-hold rights. In neither case was there a transfer of allotted land but only statutory vesting of land by operation of law, and hence did not require the prior consent of DDA," he said.

He insisted that Fortis was one of the several bidders to acquire a controlling stake in EHIRC, which is a legally constituted entity under the Indian law governing companies.

"As far as we are concerned, we bought a legally constituted company, which was duly registered under the company law," Singh said.

In a detailed statement titled "Fortis clears the air", the company said it had completed the transaction in respect of transfer of monies, shares and management.

"Fortis has acquired 90% stake in EHIRC, and the transaction is complete," it said.

The company also reaffirmed its commitment to meet any obligations that is required to meet under contractual commitments including any for free beds.