Fortis issue under ICAI consideration zone as promoters take out Rs 4.73 bn

The matter of alleged financial regularities at Fortis Healthcare is under "our consideration zone" and the institute will look into it as soon as details are available, ICAI President Naveen N D Gupta said on Tuesday.

"We have this matter in our consideration zone. As soon as the details would be received by us, our board of discipline will look into it. But as of now we do not have any information," Gupta told reporters here.

Fortis Healthcare was issued notices by the stock exchanges following a media report claiming that the company's promoters, the Singh bothers, took at least USD 78 million (about Rs 500 crore at current exchange rate) out of the publicly-traded hospital company they control without board approval about a year ago.

"We don't have any facts about this. It is only material in the newspapers, we have not received any material. We have a very robust system, the moment anything appears it automatically sets into motion," Gupta added.

Replying to the stock exchange notices, Fortis Healthcare said its wholly-owned arm Fortis Hospitals had deployed funds to the tune of Rs 473 crore as secured short-term investments to group firms of its promoters.

The media reports have also said that the company's auditor, Deloitte Haskins and Sells LLP, had refused to sign on the company's second quarter results until the funds were accounted for or returned.

Asked about ICAI's take on the financial irregularities, Gupta said "we have a very robust system, the moment anything appears it automatically sets into motion no need for any president or vice president direction is required. we have a very very vigilant department".