New Delhi, Oct. 17: Nikhil Nanda, son of Escorts group patriarch Rajan Nanda, today joined the board of Escorts Ltd as a whole-time director. He will be designated as executive director and chief operating officer.
The decision was approved by the board at a meeting held today. The company had undertaken a major organisational restructuring exercise last month in which Nikhil was appointed as group chief operating officer.
The reconstituted board of directors comprises former UTI chairman S.A. Dave, former Union minister M.G.K. Menon, P.S. Pritam and S.C. Bhargava.
Earlier, Rajan Nanda had announced plans to sell 90 per cent of the equity in Escorts Heart Institute and Research Centre (EHIRC) to Fortis Healthcare for a total valuation of Rs 650 crore. “We are getting Rs 585 crore in the all-cash deal,” he had said.
However, Delhi High Court had slammed the brakes on the takeover. Justice Anil Kumar has ordered EHIRC and seven others to maintain status quo till November 22, based on a petition filed by Anil Nanda challenging the sale.
Anil has challenged the conversion of EHIRC’s status from a charitable institution to that of a company.
The EHIRC deal also ran foul of the Delhi government, whose health minister wrote to the Delhi Development Authority (DDA) for getting back the land allotted to the hospital at “throwaway” prices. One of the conditions laid down in the transfer was that Escorts could not palm off the two-acre plot sans DDA nod.
