Ambani hosp broke rules, will have to pay state govt Rs 174.88 cr | mumbai | Hindustan Times
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Ambani hosp broke rules, will have to pay state govt Rs 174.88 cr

The Kokilaben Dhirubhai Ambani Hospital and Research Centre, which got ownership/trusteeship of the hospital transferred without informing the government, is liable to pay the state government Rs174.88 crore. Dharmendra Jore reports.

mumbai Updated: Apr 18, 2012 03:03 IST
Dharmendra Jore

The Kokilaben Dhirubhai Ambani Hospital and Research Centre, which got ownership/trusteeship of the hospital transferred without informing the government, is liable to pay the state government Rs174.88 crore.


The Comptroller and Auditor General (CAG) recorded this discrepancy in its report that was tabled in the state legislature on Tuesday. The report observed that the hospital, which was built on government land, violated existing rules by exploiting the property for commercial gains.

CAG said that the Andheri land, admeasuring 12,050 square metres, was originally allotted to the Malti Vasant Heart Trust in 1997 for an annual lease of Re1. The trust that got the land was then managed by famous heart surgeon Dr Nityanand (Nitu) Mandke, Alka Nityanand Mandke and Jyotsna Vasant Mandke. After Dr Mandke’s death, three new trustees were brought in -- two of them replaced the previous trustees.

The decision making regarding the hospital is now with the new trustees including Tina Ambani, said CAG.

CAG observed that no prior permission was taken from the government before changing trustees and hence the trust was liable to pay the unearned income of 75% of the market value in 2009, which comes to Rs174.88 crore. The report said that the government did not make any effort to recover the amount.

An official statement by the Ambani hospital said there was no change whatsoever in the ownership of land allocated, and the Charity Commissioner approved all the changes in the Board of Trustees.

“As such, there is no question of any income accruing from any supposed transfer of such ownership of the allocated land.”

According to a government circular, when land is allotted by the government at concessional rate, 40% of the total operational beds should be made available for the general public at concessional rates but the hospital charged in the range of Rs 15,000-20,000 per day, said CAG.

“The (Ambani) hospital building is put to use for commercial activities such as gift shops, a beauty saloon, a food court, an office of the Reliance Company and business centre comprising a video conference facility and ready-to-use office blocks etc, in violation of the agreement (with the government).”