Escorts group's decision to sell 17.1 per cent equity in its heart institute has been put on the backburner, after vice chairman Anil Nanda opposed the commercialisation of this charitable institution and the Income-Tax department conducted a survey on alleged illegal transfer of its assets to a limited company.
Escorts chairman and Anil's elder brother Rajan Nanda had proposed to sell 17.1 per cent of the company's stake in Escorts Heart Institute and Research Centre to Singapore-based Standard Chartered Private Equity Fund and last month, the fund had nearly completed due diligence of the heart institute.
However, the I-T survey threw a spanner and the stake sale has been deferred, at least for the time being, sources said in New Delhi on Wednesday.
During its survey at the premises of the Escorts Group in the National Capital Region and Chandigarh, the IT department is believed to have seized several documents related to the equity sale and recorded statements of the members of EHIRC's governing body as well as the Nanda brothers about the alleged illegal transfer of assets.
Sources said Escorts has put the equity sale on the backburner pending clearance from the I-T department, which is expected to submit its report sometime next month.
Neither the Escorts spokesperson nor Rajan Nanda was available for comment.'
Last month, Anil Nanda quit five group firms including Escotel Mobile Communications Ltd, Escorts Finance and Investments, Escotrac Finance and Investment, Charat Ayurvedic and Escorts Auto Components. At that time the younger Nanda had questioned the legality of the controversial decision to sell EHIRC stake, saying he was determined to stop it.
The clash between the two brothers came out in the open when Anil wrote to members of the Escorts board questioning the unanimity of the decision and showcasing the opinion from Supreme Court lawyers.
Rajan had, meanwhile, rejected the charges saying he wanted to internationalise the institute to really serve the purpose for which it was created.
"There is collusion between the board of directors of Escorts and EHIRC. The sale of 17.1 per cent Escorts Ltd stake in EHIRC was never approved at the board meeting," Anil had said.
Escorts Heart is a closely held company with 80 per cent of its equity resting with Escorts Limited, and 10 per cent each with Rajan Nanda and heart specialist Naresh Trehan.
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