Differences have cropped up between Mumbai-based healthcare services major Wockhardt and city-based Kamineni Hospitals, with the former accusing the latter of “employing strong arm tactics to compel them (Wockhardt employees) to resign before midnight of December 16”.
Wockhardt had joined hand with Kamineni in 2005 to manage a hospital and the cardiac care centre of Kamineni Hospitals in Hyderabad.
Wockhardt Chief Operating Officer Vikram Singh Raghuvanshi alleged that the Kamineni management was forcing its staff to resign.
Kamineni, however, dismissed the allegations as baseless.
“Wockhardt pays Kamineni a percentage of the top line,” Raghuvanshi said, adding they adhered to the provisions of the agreement.
When contacted, Sashidhar Kamineni, MD of Kamineni Hospitals, said Wockhardt had breached the agreement, which stated that neither Kamineni nor Wockhardt would leverage each other’s brand to raise any kind of resources.
Wockhardt, which is divesting its stake in some of its assets as it has a debt of about Rs 600 crore, had taken the valuation of Kamineni’s infrastructure and reflected it in the prospectus for an IPO that it filed a year ago, Kamineni said.
“We have not forced anyone. In fact, the employees were leaving as Wockhardt was not attending to their demands. This was affecting the patient care. We rather gave an assurance to continue them in the duties. The issue is between Kamineni and Wockhardt and not with employees or patients,’’ Kamineni said, adding they would file a defamation against Wockhardt.
