Fortis arm slapped Rs503-cr penalty in land case

Fortis Healthcare said late on Friday that its subsidiary has been ordered to deposit Rs503.36 crore for non-compliance with conditions of land allotment lease.

The mid-cap company has an equity capital of Rs463.17 crore. Face value per share is Rs10.

Fortis announced after market hours on Friday that the Directorate General of Health Services (DHS) has ordered one of its subsidiaries, Escort Heart Institute & Research Centre (EHIRCL), to deposit Rs503.36 crore towards recovery of unwarranted profit made by EHIRCL for alleged non-compliance of the conditions of allotment/lease of land since its allotment in 1982.

According to an EHIRCL statement, the impugned order is legally flawed and untenable. The EHIRCL management will challenge it in the High Court of Delhi or such relevant authority to seek suitable legal remedies available to it under law.

On a consolidated basis, Fortis Healthcare reported a net loss of Rs90.86 crore in Q4 ended March 2016 against a net loss of Rs17.53 crore in Q4 ended March 2015. Net sales rose 1.13 per cent to Rs1,061.32 crore in Q4 ended March 2016 over Q4 ended March 2015.

Fortis Healthcare is a leading integrated healthcare delivery service provider in India. The healthcare verticals of the company primarily comprise hospitals, diagnostics and day care specialty facilities.