The Hindu Business Line : HC restrains DDA from physical possession of Escorts Heart

EVEN as Fortis got a breather on Friday with the Delhi High Court restraining the Delhi Development Authority (DDA) from taking physical possession of Escorts Heart Institute and Research Centre (EHIRC), following cancellation of the land lease deed, the authority plans to begin spadework for the long-drawn eviction process.

DDA officials told Business Line the cancellation of the lease deed did not mean an immediate eviction.

"The eviction proceedings are initiated under the Public Premises Eviction of Unauthorised Occupants Act, 1971. It involves sending a show-cause notice to Escorts Hospital asking them why action should not be initiated against them for not complying with the lease agreement.

"They will have to file their objections, which will be considered by the State Officer of DDA. It is a long process and takes months," officials said, adding that without physically evicting, DDA could start the proceedings in accordance with the law.

Notice to DDA: Earlier on Friday, the Delhi High Court restrained DDA from taking physical possession of Escorts Hospital. It also issued a notice to DDA asking it to file a reply to the Escorts petition within two weeks. The interim order will remain in operation till the next date of hearing.

According to agency reports, counsel Mr Abhishek Manu Singhvi, appearing for EHIRC, submitted that it was illegal on DDA's part to issue a notice to the hospital for allegedly not treating 25 per cent poor patients free as per the clauses of the lease agreement after the institution had filed its reply a year ago.

Heart of the matter: At the heart of the issue is the recent acquisition of EHIRC by Fortis Healthcare for Rs 585 crore from the Rajan Nanda-promoted Escorts group. The deal sparked off a controversy over ownership of the land on which EHIRC was built.

The DDA alleged that EHIRC had violated the norms not only when it was converted from a charitable institution to a corporate entity almost a year ago, but most recently when it was sold to Fortis Healthcare.

"We have raised two objections in the cancellation order - one that Escorts was not abiding by the condition of providing free treatment to 25 per cent of patients living below poverty line; and that there has been an unauthorised transfer without the permission of DDA," officials said, but admitted that physical eviction could prove to be difficult in case of a hospital as it involves the lives of patients.

"We will get into the issue after the eviction proceedings are completed," officials said.

Industry observers said the authority had the option of levying a financial penalty on the owners or taking over the premises, which could then be given to a Government hospital to run.

An Escorts official said the cancellation of the lease would not impact the sale process of EHIRC. He said any further action to be taken in this regard would be by Fortis.

Fortis has assumed full control of EHIRC and reconstituted the board.

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