Fortis Healthcare drops over 2% on Rs 500 cr fine on unit

Fortis Healthcare's stock declined over 2 per cent today as 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 company's stock dipped 2.02 per cent to settle at Rs 164.80 on BSE. Intra-day, it dived 4.81 per cent to Rs 160.10.
On NSE, it went down by 2.4 per cent to end the day at Rs 164.50.
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.

The company will challenge the order for the recovery of 'unwarranted profit' made by Escorts by 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.