HC stays Escorts sale

The Delhi High Court today said that the stay on the sale of the Escorts Heart Institute and Research Centre (EHIRC) to the Ranbaxy controlled Fortis Healthcare would continue till January 9, the next date of hearing.

While asking Delhi Development Authority (DDA) to file its reply within two weeks and the respondents to file rejoinder before the next date of hearing, Justice Anil Kumar said the interim order pronounced earlier on stay on the sale of the Escorts would continue and the DDA was directed to protect the possession of the land of the hospital allotted to EHIRC.

The court was informed that the Estate Officer of the Union Urban Development Ministry would hear Escort's application on November 28 regarding the possession of the land.

Anil Nanda, the estranged brother of Escorts chairman Rajan Nanda, had moved the court opposing the Rs 650-crore deal that Rajan had struck for sale of 90 per cent equity in EHIRC to the Fortis group.

While challenging the conversion of EHIRC from a charitable trust set up to treat poor patients into a company, the petitioner had sought the court's direction for a permanent injunction from transferring the hospital to another private company.

Anil, in his petition filed through counsel P K Bansal, had alleged that the hospital was being sold violating all rules and regulations. ''Late H P Nanda, the founder of Escorts group of companies, had conceived the idea of setting up a charitable institute of world fame, to help the weaker sections of society and to create a medical infrastructure for the citizens of India. It is with this vision that EHIRC-Delhi was formed as a charitable society,'' it stated.

The court had directed Rajan Nanda to maintain status quo and not to transfer its ownership till the matter was decided.

Earlier, it had on October 7 restrained DDA from taking physical possession of the heart institute whose lease deed was cancelled by the land owning authority for allegedly violating the clauses of lease agreement to extend free treatment to 25 per cent of the patients.