Due diligence of Escorts Heart Institute on

Even as the two Nanda siblings are locking horns over the legality of Escort's decision to divest part equity in its heart institute, Standard Chartered Private Equity Fund on Tuesday said it was carrying out due diligence for evaluating the stake before arriving at investment decision.

"The Escorts Heart Institute and Research Centre deal is in due diligence stage. We normally do a comprehensive due diligence before investing," global head of Standard Chartered Private Equity Karam Butalia told PTI from Singapore.

The fund has been in negotiations with Escorts Limited, which holds majority 80 per cent stake in the heart institute, for buying 17.1 per cent of its stake in EHIRC.

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Butalia, however, did not give details saying, "We also have a confidentiality agreement and hence are unable to provide any additional details on EHIRC deal itself."

However, the deal has been questioned by Escorts Limited vice-chairman Anil Nanda, who says EHIRC was created as a charitable institution and should remain so while elder brother and Escorts chairman Rajan Nanda says equity sale will help internationalise the institute.

Asked about whether the fund is rethinking on the deal after the filial spat became public, Butalia cited the confidentiality clause and declined to comment.

Butalia said the Stanchart Fund invests in "later stage" companies and would be looking at other sectors like healthcare and pharmaceuticals for similar investments.

The fund's comments come close on the heels of Anil Nanda virtually rejecting the peace offer by Rajan, who said the deal will not be done unless the "family matter" was resolved.

"My stand has not changed. By smoking a peace pipe with me, this deal will not become legal....the only way to resolve it (controversy) is to convert the heart institute back into a charitable institution," Anil said.

Anil's tough stand follows Rajan Nanda saying he wanted to first resolve the "family problem" before any equity sale in Escorts Heart Institute takes place.

As if to mollify an angry Anil, Rajan had said he may soon talk to his younger brother to discuss the entire issue.

"I have no differences of any kind with Anil....the sale of equity in EHIRC has not happened and will not be undertaken till the family problem is solved," he said.