Financial Daily from THE HINDU group of publications
Tuesday, Aug 05, 2003
Financial Daily from THE HINDU group of publications Tuesday, Aug 05, 2003 |
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Medical Institutions & Hospitals Corporate - Corporate Disputes Heart centre divestment — Status quo likely till Nandas find common ground
Neha Kaushik
New Delhi , Aug. 4 STATUS quo is likely to be maintained on the issue of divestment of equity in Escorts Heart Institute and Research Centre (EHIRC) till such time that the deadlock between the Nanda brothers is "amicably" resolved. With Mr Anil Nanda, Vice-Chairman and Managing Director, Escorts Ltd, standing his ground on accepting nothing less than a reversal of the process of corporatisation of the Escorts heart institute to a charitable trust, Mr Rajan Nanda, elder brother and Chairman and Managing Director, Escorts, looks unlikely to push matters in a hurry. Mr Rajan Nanda told Business Line that "Escorts will not go ahead with the divestment of equity in EHIRC until this issue is resolved. We will resolve this in a professional manner, taking a look at what is good for the company in the long run." Sources close to Mr Anil Nanda said he was unwilling to accept anything less than restoring EHIRC's charitable status. EHIRC was registered as a charitable trust in 1983-84 and was corporatised in 2000. Meanwhile, according to legal opinion, the conversion of a charitable trust to a society and its subsequent corporatisation would not hold in the eyes of the law. Senior counsel Mr Lalit Bhasin told Business Line that his opinion had been sought on the limited issue of a charitable trust being converted to a society and its subsequent conversion to a limited company. "Both are not permissible in the law," he said. Matters came to such a pass, when the Escorts board apparently cleared the disinvestment of 17.1 per cent of EHIRC to Singapore-based Merlion India Fund — following which Mr Anil Nanda circulated a letter of dissent among board members seeking to halt the divestment. Merlion is yet to ink the deal with Escorts on picking up equity in the heart institute.
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