THE Delhi High Court has rejected a petition by Escorts Heart Institute
challenging a notice by Delhi Development Authority (DDA) to evict the
land allotted to it for alleged violation of provisions of the lease
Escorts had challenged a show cause notice of DDA to evict the land as the hospital did not comply with the lease deed to reserve 25% bed for free treatment of the weaker section of the society.
Fortis officials were not available for comment. Fortis Group had bought 90% stake in Escorts Heart Institute in 2005 for Rs 585 crore. The remaining 10% stake are with the “friends of the Ranbaxy promoter family”.
The company’s shares at the Bombay Stock Exchange closed at Rs 85.15, up 0.41%. Escorts had contended that instead of conducting proceedings under the Public Premises Act (Eviction and Unauthorised occupants), DDA should have filed a civil suit for taking back the possession of the land. A Division Bench of chief justice M K Sharma and Justice Sanjeev Khanna rejected the hospital’s plea.
DDA’s counsel Ajay Verma said the hospital failed to fulfil the lease conditions and as Escorts company has merged with Fortis last year, the hospital was not entitled to avail the government land.
The Bench also rejected another submission made by the Escort counsel Sanjeev Puri that DDA had never given the land on lease to the hospital and DDA had no right to issue show-cause notice for eviction.
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