Fortis Healthcare sinks on Rs 500-crore fine on subsidiary

MUMBAI: Shares of Fortis Healthcare slumped over 4 per cent in an early trade today after the company said its subsidiary has received an order from the Directorate General of Health Services ( DHS) to deposit Rs 503.36 crore for non-compliance of conditions of land allotment lease.

The shares dipped 4.81 per cent to Rs 160.10 on BSE.

At NSE, shares of the company tumbled 4.92 per cent to Rs 160.25.

Fortis Healthcare on June 10, said its subsidiary Escort Heart Institute and Research Centre ( EHIRCL) has been ordered by the DHS to deposit Rs 503.36 crore for non-compliance of conditions of land allotment lease.

However, the company has said it will challenge the order for the recovery of 'unwarranted profit' made by Escorts not following conditions of land lease since its allotment in 1982.

"EHIRCL has informed us that in a long disputed case pertaining to the period 1984-2007, it has today received an order from DHS for the deposit of an amount of Rs 503.36 crore towards recovery of unwarranted profit made by it for alleged non-compliance of the conditions of allotment/lease of land since its allotment in 1982," Fortis Healthcare said in a BSE filing on Friday.