Fortis subsidiary directed to pay ₹503 cr to DGHS within a month

Fortis said EHIRCL is in the process of evaluating available legal recourse as may be advised in this regard.

May 29, 2018 10:42 am | Updated 10:09 pm IST - New Delhi:

 A Fortis hospital building is pictured in Gurgaon, India, May 11, 2018.

A Fortis hospital building is pictured in Gurgaon, India, May 11, 2018.

Fortis Healthcare on Tuesday maintained that its subsidiary Escort Heart Institute and Research Centre (EHIRCL) has been directed to deposit ₹503.36 crore to the Director General of Health Services (DGHS) within a month.

This is on account of unwarranted profit allegedly made by the hospital by not complying with the conditions of allotment letter/lease deed, the officials said.

The statement issued by EHIRCL on Tuesday, said, “We have received an order from the Office of the Special Committee, Delhi Secretariat today i.e. May 28, 2018. We are evaluating the order post which we will decide on our future course of action. As a responsible, process and guideline oriented healthcare entity, we continue to comply with necessary guidelines mandated by regulatory bodies”.

EHIRCL had in July 2016 moved the Delhi High Court challenging the ₹ 503.36 crore demand of DGHS for unwarranted profits.

The Delhi government had in June 2016 asked five private hospitals in the Capital, including EHIRCL, to deposit “unwarranted profits” of over ₹700 crore for refusing free treatment to the poor.

The private hospitals were allotted land at concessional rates on the condition that they will keep 25% of out-patient department capacity and 10% of their in-patient department capacity to treat Economically Weaker Section patients free of cost.

On August 1, 2016, the High Court set aside the DGHS’s order and remitted the matter back to its Special Committee for taking a decision after giving EHIRCL a hearing.

“EHIRCL has informed that the Office of the Special Committee vide order dated May 28, 2018, has directed it to deposit an amount of ₹503.36 crore in the account of the Delhi Government in favour of Director General of Health Services within a month of receiving this order,’’ Fortis said in a regulatory filing.

(with PTI inputs)

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