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DNA Exclusive: Maharashtra govt pulls up Kokilaben Hospital, imposes Rs 174 cr fine

In a government audit, the Accountant General of Maharashtra raised several objections.

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The Maharashtra government has asked the Malti Vasant Heart Trust, whose trustee list includes Tina and Anil Ambani, to pay Rs 174 crore for using parts of the Kokilaben Dhirubhai Ambani Hospital in Andheri (West) for commercial purposes other than hospital operations.

The government has also pulled up the Trust for changing the trustees without taking permission from the government.

In 2009, the revenue department had allotted 14 acres to the Malti Vasant Heart Trust for construction of a hospital, on a 30-year lease at a token rate of Rs 1 per year.

In a government audit, the Accountant General of Maharashtra raised several objections.

He also claimed that hospital has been exploiting government land for commercial purpose other than the hospital, such as a gift shop, spa, beauty salon, food court, and various offices of Reliance Group.

"Therefore, as per the 2008 ready reckoner rate, the total value of the land was Rs 233 crore, the 75 per cent amounting to Rs 174 crore has to be recovered from Reliance," says an order by the Mumbai suburban collector. DNA has a copy of the government order.

"Besides, Tina Ambani in her letter to Chief Minister in 2009 said that this said hospital is the flagship project by Anil Dhirubhai Ambani. She had also claimed that they had invested Rs 291 crore for the development of this hospital. It shows that the Malti Vasant Heart Trust property has been controlled by Anil Ambani. While developing this hospital, Ambani had availed the floor space index of 5.

Therefore, Ambani has to pay Rs 174 crore to the state government for the said violations," the order says.

The Accountant General of Maharashtra also noted that failure to pay the amount could result in the government taking back the land.

Dr Ram Narain, Executive Director at Kokilaben Dhirubhai Ambani hospital declined comment, saying it would not be appropriate for him to do so.

In its written reply to Mumbai Suburban Collector, however, the Trust has argued that it has not been using the hospital premises for commercial purpose, but that the given facilities are supplementary to the hospital's activities and helpful to patients.

"The said objected space is not the office of the Reliance company, but it is the administrative building where research has been conducted on various diseases. While the food court has been used by the relatives of the patients and visitors. This is one of the essential sort of the facilities in the hospital and the gift shop is for the visitors and relatives. People buy gifts and give them to patients, mostly the child patients," the Trust said in its reply to the Mumbai suburban collector.

The management of the hospital was overseen by the Mandke Foundation which was established by Dr Nitu Mandke in 1998. After his demise in 2003, Anil Ambani funded the development of the hospital. However, the ownership of the land remained with the Trust, whose current members are Dr Alka Nityanand Mandke, Anil Dhirubai Ambani, Kokilaben Dhirubai Ambani, Tushar Motiwala, and R Narayan.

However, as per the final order by the government, Alka Mandke is the only remaining member of the original trustees, and that the trust is now completely controlled by Anil Ambani.

Controversy over land lease

Revenue dept allotted 14 acres to Malti Vasant Heart Trust on 30-year lease at token rate of Rs1 per year in 2009 
As per the 2008 ready reckoner rate, the total value of the land was Rs 233 cr. Its 75% amounts to Rs 174 cr

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