Mumba

Sparring holds up $22.5-m grant to Parsi hospital

Turf war: Opponents are worried they will lose a 106-year-old community asset.

Turf war: Opponents are worried they will lose a 106-year-old community asset.  

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Hong Kong-based donors say they will withhold donation if issues are not sorted

Mumbai: A $22.5-million donation to the B.D. Petit Parsee General Hospital (PGH) in Cumballa Hill by a Hong Kong-based couple is in limbo, with Parsis raising objections for fear of losing a 106-year-old community asset. The philanthropic couple has now said they will withdraw the donation if the issues are not sorted out soon.

The donation was to be used to boost the PGH, which is exclusive for Parsis, and build a new seven-storey super specialty cosmopolitan hospital in the campus to be run by the Medanta group founded by cardiovascular surgeon Dr. Naresh Trehan.

“The donors (Jal and Pervin Shroff) have categorically confirmed they will withdraw the pledge to donate $22.5 million and Global Health Pvt Ltd (a company belonging to the Medanta group) has stated that they will terminate their agreement,” Homa D. Petit, president of the PGH, said in a statement. Mr. Petit said in such a situation, the community will be at a loss, and also released the broad terms of the agreement between PGH and Medanta to set fears at rest.

“The new hospital building, of a value of approximately ₹150 crore, will be erected and owned by PGH. This will be an accretion to the community assets. No part of the land on which the new hospital is to be erected will be alienated but will continue as a community asset,” Mr. Petit said. “Medanta will only have operating, equipping and management rights for the new hospital. It shall have no rights to the new hospital building, nor to the land.” Medanta will charge concessional rates for specialised treatments. “Patients can have access to super-specialty facilities at the new hospital and move back to PGH for post-operative stay, thus increasing the occupancy of PGH,” he said.

PGH has been faced with an annual deficit of nearly ₹8 crore for many years. The decline of the Parsi population, lack of super-specialty facilities in the hospital and many Parsis living in the suburbs has resulted in a decline in patient footfall. But as soon as news of the agreement came to light, a section of the community voiced its criticism against it. “The managing committee has transferred the property to Medanta even when they are not legally-appointed trustees. They have done this without the charity commissioner’s approval,” said community member Rayomand Zaiwalla. “The hospital’s management committee consists of businessmen instead of doctors. The hospital was doing well on donations till the committee had doctors. When the businessmen came on board, the community lost faith in the institution and the footfalls went down,” he said. Mr. Zaiwalla’s father Khushroo has filed a petition in the charity commissioner’s office against the agreement.

Dr. Trehan, however, said there was a lot of misunderstanding. “We have only sought a lease to operate. There is no ownership involved. We are investing money to bring standard care to the Parsi community and others. In one stroke, a world-class centre will come up for the patients and the Parsis will get better care,” Dr. Trehan told The Hindu.

Jehangir Patel, community member and editor of Parsiana said the community cannot continue to underwrite the hospital's annual ₹10-crore deficit. “This proposal is the only viable offer on the table. Letting it go may prove suicidal. The PGH is a boon to the community. Without it where will the middle- and lower-income people go, not to mention the indigent?” he said. Any new undertaking has its risks but when the benefits clearly outweigh the disadvantages, not venturing forth may prove disastrous, he said.