HC admits Anil Nanda’s plea that Fortis IPO is illegal

HC admits Anil Nanda’s plea that Fortis IPO is illegal

New Delhi: The Delhi High Court has admitted an application by Anil Nanda seeking that the public offer of Fortis Healthcare be declared illegal on the ground that the Escorts Heart Institute it acquired in 2005 is under dispute.

A single member bench of Justice Manmohan Singh also allowed Nanda’s amendment application seeking the court to declare transfer of 90% shares of Escorts Heart Institute and Research Centre (EHIRC) to Fortis “as void and bad in law".

“I am of the view that by allowing the amendment sought by plaintiff (Anil), the nature and character of the suit would not be changed. Rather it is necessary for the purpose of deciding the real dispute between the parties," said Justice Manmohan Singh in his eight-page order.

Anil Nanda and his elder brother Rajan Nanda are at loggerheads over conversion of EHRIC to a company from a charitable trust and subsequent sale of 90% stake to Fortis Healthcare for Rs585 crore in 2005.

After the acquisition, Fortis Healthcare made its public offering in 2007 to raise Rs500 crore.

The court has already made Fortis Healthcare a party in the ongoing litigation in 2007.