Maharashtra Revenue Department sits on Rs 175 crore fine to Kokilaben Dhirubhai Ambani Hospital

The BJP-led state government is tight-lipped about its decision on fining the Kokilaben Dhirubhai Ambani Hospital, Andheri (West) with Rs 175 crore for commercially exploiting the 14-acre plot given by the state solely for hospital purpose. The hospital management has allegedly misused the plot by running a gift shop, spa, beauty salon, food court and offices of the Reliance Group.

Sources from the State Revenue Department said, "The minister (Chandrakant Patil) wants to either waive off the total Rs 175 crore fine or decide to give major relief to Ambani," said a source from the revenue department, privy to the probe.

Last year, the revenue department had passed an order against the Malti Vasant Trust that runs the Kokilaben Dhirubhai Ambani hospital. Anil and Tina Ambani are trustees of the Trust.

The source added that Patil was about to take a decision favouring the Ambanis, but has kept it on hold as it could put a blot on the clean image of the BJP government. "Hence, the minister (Patil) is very cautious about this particular file even though he has orders from the BJP high command in Delhi to give a breather to Ambani," the source said.

When contacted, State Revenue Minister Chandrakant Patil told DNA that he is not aware of this particular file. "I will reply on it only when I check the details," Patil said. When contacted on Wednesday, Janhavi Bellare, spokesperson of Kokilaben Dhirubhai Ambani Hospital refused to comment on the issue.

It may be recalled that DNA was first to report on the government's decision to slap a fine of Rs 175 crore on the Kokilaben Dhirubhai Ambani Hospital for commercially exploiting the 14-acre plot.

The hospital allegedly also changed the trustees without the consent of the government. The Revenue Department had allotted the 14-acre plot to the Trust on a 30-year lease at a token rate of Rs 1 per year in 2009. As per the 2008 Ready Reckoner rate, the total value of the land was Rs 233 crore.

Nationalist Congress Party spokesperson Nawab Malik said that Patil should not succumb to pressure. "We have been alleging that the BJP government is hand-in-glove with big corporate groups. This is one example," Malik said.

QUICK RECAP

The management of the hospital was overseen by the Mandke Foundation which was established by Dr Nitu Mandke in 1998. After his demise in 2003, Anil Ambani funded the development of the hospital. However, the ownership of the land remained with the Trust, whose current members are Dr Alka Nityanand Mandke, Anil Dhirubhai Ambani, Kokilaben Dhirubhai Ambani, Tushar Motiwala, and R Narayan