The Hindu Business Line : Anil Nanda wants Govt to probe Escorts institute sale

Mr Anil Nanda, Goetze India CMD, and younger brother of Mr Rajan Nanda, Escorts Ltd Chairman, has approached the Ministry to investigate the sale of the entity.

This move comes close on the heels of the two brothers battling it out on the `real' status of EHIRC in the Delhi High Court.

Mr Prem Chand Gupta, Minister of State (Independent Charge) for Company Affairs, told Business Line, "Anil Nanda has submitted a complaint to us stating irregularities in the process of the sale of the heart institute." On whether the Ministry is taking any action on Mr Anil Nanda's complaint, he said, "The officials are examining the complaint."

It is learnt that, in his complaint, Mr Anil Nanda had submitted a copy of the recent high court order on EHIRC and questioned the conversion of EHIRC into a company.

Recently, the Delhi High Court, in response to a petition filed by Mr Anil Nanda, had issued a status quo order on the sale of EHIRC to Fortis Healthcare. Mr Anil Nanda had challenged the conversion of EHIRC from a charitable institution into a company or non-charitable body.

Escorts Ltd last week announced a deal with Fortis to sell its 90 per cent stake in EHIRC for Rs 585 crore. The deal was seen as helping Escorts Ltd pay off part of its high cost debt.

Sources close to Mr Anil Nanda said the Ministry of Company Affairs had been approached because Mr Nanda felt the charitable trust had been "illegally converted" into a company and wanted the Ministry to look into the matter.

Incidentally, this is not the first time that the Escorts group has come under the Ministry of Company Affairs' lens. In September last year, the Ministry had ordered inspections into the accounts of certain companies of the group. Besides, the income-tax department had also initiated penal proceedings against Escorts Ltd for avoiding tax.

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