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Fortis Land: The scenario behind the deal

The government had decided that three members of the government including one from the JDA would be on board of the hospital.

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A local court in Jaipur has ordered FIR against the owner of Fortis Hospital and renowned heart surgeon Dr Naresh Trehan. In 1999, Gehlot government had allotted 4.7-acre land for token money of Rs 1 to Escort Heart Institute and Research Center on condition that 10% bed would be reserved for poor and the hospital would be completed in two years. There was another condition that the land would be used for the same purpose for which it was allotted.

The government had decided that three members of the government including one from the JDA would be on board of the hospital. However, before the transfer of the land, many conditions were changed and cabinet approval was also given for commercial use of the land. Besides, the hospital trust was given a concession of land use change to commercial only for 60% cost.

One Rajkumar Sharma filed FIR with Jawahar circle police station but no action was taken. The matter would have remained buried but came to light after the efforts of Dr Anil Shekhawat, who brought the matter in public domain and filed a complaint with the chief metropolitan magistrate. After three years, the court had order FIR against Dr. Naresh Trehan, industrialist Rajan Nanda and Ritu Nanda, Chairman Shivendra Mohan Singh and CEO Malvendra Mohan Singh.

The Formation….

  • 30 May 2000: A new company was formed in Jalandhar
  • Escort Heart Institute and Research Center Limited Company
  • Rajan and Ritu Nanda were principal shareholder
  • Dr Trehan applied in JDA to transfer land from trust to company
  • Then JDC NC Goyal initiated process
  • Then JDA Secy RS Gathala termed allotment wrong
  • Gathala’s objection was ignored and land allotted to company
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