Fortis Healthcare has a sickly pallor

Fortis Healthcare has a sickly pallor today and this is caused by the Directorate General of Health Services (DHS).

The DHS has ordered the company to deposit Rs.503 crore for non-compliance of conditions of land allotment lease. This is actually a non-compliance by its subsidiary Escorts Heart Institute and Research Centre (EHIRCL).

This is a case going on and on since 1984-2007 and it has taken so many years for the DHS to come up with this order today. This deposit is 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.

Naturally, Fortis will be challenging the order, which in turn means the case still continues.

As such the market is in a foul mood today and this stock is obviously not being spared – intra day the stock hit a low of Rs.160.10, down 5%. Its 52-week low stands at Rs.141.10.