The Hindu : Tamil Nadu News : Kanchi Trust appeals for court permission

Online edition of India's National Newspaper
Saturday, Feb 25, 2006

Tamil Nadu

Tamil Nadu

Kanchi Trust appeals for court permission

Special Correspondent

Says Trust cannot run hospital without college

CHENNAI : The Kanchi Kamakoti Peetam Charitable Trust has appealed against a single judge order rejecting its plea for permission to sell its Sri Jayendra Saraswathi Institute of medical Sciences and the Sri Kanchi Kamakoti Sankara Hospital to a private party.

Linking its present appeal with its two other pending writ petitions dealing with the non-grant of the essentiality certificate for the medical college, the application said the Trust could not run the hospital without the medical college.

"If the court decides that the rejection of essentiality certificate to the medical college by the State Government is bad and directs issuance of the certificate, the petitioner-Trust can move the Medical Council of India for expeditious clearance and try to start the courses for the academic year 2006-07."

According to the petitioner, the Trust decided to sell its properties as it had suffered huge losses due to the non-issuance of essentiality certificate.

It has already invested Rs. 80 crore for establishing the medical college, and borrowed another Rs. 75 crore from banks.

As it is unable to repay the loans, it opted to clear its liabilities by selling the properties. However, the single judge dismissed the suit that prayed for court's permission to alienate the properties in favour of a buyer who had already been identified after private negotiations.

The matter is likely to come up before the First Bench for hearing on February 27.

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