DDA ends Escorts Heart lease

The Delhi Development Authority (DDA) has cancelled its land lease agreement with Escorts Heart Institute & Research Centre, which has just been sold by Escorts Ltd to Fortis Healthcare.

The DDA has alleged violation of the lease agreement. The EHIRC management, on its part, has decided to move the Delhi High Court tomorrow seeking injunction against the order.

In a notice served to EHIRC this evening, DDA said: "The competent authority has decided to determine the lease deeds of EHIRC. Accordingly, you are directed to peacefully yield the said land and building thereon to the lessor "" DDA."

DDA said the allotment letter stipulated that EHIRC would serve as a general public hospital with at least 25 per cent of beds reserved for free treatment of the weaker section of society. "However, EHIRC is not following this stipulation," the notice said.

Legal experts feel there may not be an immediate impact on the Delhi hospital but that DDA's decision may add another dimension to the legal battles over the change of ownership.

Fortis Chairman Harpal Singh said he had no knowledge of DDA's decision. "I have no such intimation. I cannot comment unless I have something in hand. We will cross the bridge when we come to it," he said.

PK Bansal, counsel for Anil Nanda, Escorts Chairman Rajan Nanda's estranged brother, who has filed a case objecting to EHIRC's sale, said he did not know about the DDA move.

"However, we were fearing this and that's why we had moved the court for reverting EHIRC to charitable status," he said.

Sangeeta Chandra, a lawyer on the DDA panel, said, "DDA can start proceedings under Section 4 Sub Section 1 of Public Premises Act of 1971. The aggrieved parties can challenge the cancellation order."

A senior advocate, Manmohan, said, "Physically, the land remains with EHIRC. DDA will have to file a suit for possession of land, which will take time."