HC issues notices to Rajan Nanda, Escorts Hospital on Fortis IPO

New Delhi, Dec 8 (UNI) The Delhi High Court today issued notices to Escorts Ltd and its Chairman Rajan Nanda on an objection application filed by his estranged brother Anil Nanda seeking direction to delete the name of the Escorts Heart Institute and Research Centre(EHIRC) from the Fortis Healthcare's proposed IPO in March next year.

Justice Reva Khetrapal asked the respondents-- Escorts Ltd, EHIRC, Mr Nanda and other board members-- to file their replies by February 6, the next date of hearing.

Mr Anil Nanda has also sought the direction to the SEBI not to approve the Red Herring prospectus which was mandatory for launching the Initial Public Offer(IPO).

The Counsel representing Fortis Healthcare refused to accept the application saying that it was not a party to the petition.

The petition said the Fortis Group, owned by the Ranbaxy Group, had planned to launch the IPO to raise funds to the tune of Rs 500 crore in March 2007 by mentioning the name of EHIRC in the prospectus.

The Judge asked the Counsel to file an application for change of the EHIRC to Fortis Escorts despite an order for maintaining status quo.

The court also asked the respondents to reply to the contempt notice which was served on them for releasing funds to the Income Tax department.

The Court had served contempt notices to Escorts Heart Institute and Research Centre (EHIRC) and others on the petition of Mr Anil Nanda for issuing cheques worth Rs five crore to the Income Tax Department in violation of the court order directing to maintain status quo.

''The respondents have deliberately and willfully violated the order of September 30, 2005 in which the court had directed the Escorts Hospital to maintain status quo,'' said the petition filed by Counsel P K Bansal for Anil Nanda and his company Goetze (India) Ltd.

Escorts chief Rajan Nanda had allegedly sold the Escorts Heart Institute and Research Centre to the Fortis Group for Rs 595 crore.

''Late H P Nanda, the founder of Escorts Group of Companies, had conceived the idea of setting up a charitable institute of world fame, to help the weaker sections of society and to create medical infrastructure for the citizens of India. It is with this vision that EHIRC-Delhi was formed as a charitable society,'' the petition said.

UNI PAT SY ND1826