Counting the lapses

Fortis Healthcare has revealed the findings of a probe by law firm Luthra & Luthra. Here are the main allegations: Fortis Hospital Ltd (FHsL) extended short-term loans of ₹494.14 crore to three borrowers on July 3, 2017. As of March 31, 2018, the outstanding amount from this investment was ₹445.03 crore including interest. This is a violation of regulations as borrowers were related parties to the promoters. FHsL paid ₹100 crore to acquire a Mumbai property during 2013-14. While the deal didn’t materialize, at the end of March 31, 2018, the company was yet to receive ₹23.75 crore from this amount. The Delhi Development Authority had terminated lease deeds and allotment letters relating to land parcels on which a hospital of the company’s subsidiary Escorts Heart Institute and Research

Center Ltd (EHIRCL) is built. Subsidiary EHIRCL has open tax demands of ₹96.27 crore for various assessment years, which are being scrutinized by the tax department.

EHIRCL was asked to pay a penalty of ₹503.37 crore by the Delhi government's directorate general of health services for making unwarranted profits due to non-compliance with a high court order on providing free beds/treatment to patients. On February 16, 2018, markets regulator Sebi had summoned Fortis to furnish by February 26, 2018 ‘certain information and documents’ relating to the ₹473 crore secured short-term loan made to the group firms of its promoters Malvinder Singh and Shivinder Singh.