Wednesday, December 14, 2011

Minority partner, majority role How Todi ran the show SANJAY MANDAL

http://www.telegraphindia.com/1111215/jsp/frontpage/story_14884328.jsp

Minority partner, majority role

How Todi ran the show

Calcutta, Dec. 14: S.K. Todi, a minority stakeholder in AMRI Hospitals with a little over 32 per cent share, had sweeping management control over the facility, according to accounts by multiple sources such as insiders and doctors.

Todi was running the show at the Dhakuria AMRI with the majority stakeholders largely remaining sleeping partners in the venture, the insiders told The Telegraph. The R.S. Goenka and R.S. Agarwal families, which own the Emami group, have a 66 per cent stake in AMRI.

The state government, the share of which has shrunk to 1.9 per cent, also did not exercise any control.

Todi (69) and five other directors — Ravi Todi (42), Prashant Goenka (38), Manish Goenka (37), Radheshyam Goenka (65) and Dayanand Agarwal (64) — are in police custody following the fire that killed at least 90 people. R.S. Agarwal (67), the other arrested director, is undergoing treatment in a hospital.

"Everybody knew that it was S.K. Todi's hospital," said a doctor attached with the hospital for several years.

According to him, the Emami group was more involved in the Salt Lake facility and the women and child hospital at Mukundapur.

Old-timers in the hospital said Todi assumed the role of a hands-on director ever since the Apollo group moved out of the hospital's management in November 2003. In an attempt to save the Niramoy Group of Institutions, a hospital run by a trust, the government had brought in Todi and some other promoters in 1994 and AMRI Hospitals was set up.

The AMRI group had entered into an agreement with the Apollo Hospitals group in the late 1990s, under which Apollo helped in managing the Dhakuria unit. Several senior and mid-level officials of AMRI were sent to Apollo Hyderabad for training.

"The CEO used to run the daily administration while Todi played a role in the background and used his connections with the ruling Left to secure favourable deals from the government," said a source.

This newspaper reported today how the Jyoti Basu government had handed over the Dhakuria land to AMRI after locking the annual lease rent at Rs 9.94 lakh — 16 times less than the current market lease rate — for 30 years.

Todi knew that he need not be concerned about the administration as long as Apollo — a chain with expertise in running medicare institutions profitably — was a partner.

"Todi started coming to the hospital regularly from 2004 and taking an interest in nitty-gritty like employing security staff, besides addressing larger issues of financial performance and extension plans," said a senior AMRI official.

According to him, in an attempt to retain control over the institution, Todi had allowed an almost free run to two loyal employees — Preeta Banerjee, vice-president, administration, and Satyabrata Upadhyay, senior vice-president.

The cops in Lalbazar got a glimpse of the loyalty this afternoon when Upadhyay refused to sit on a chair when he was taken for questioning in the presence of Todi.

"Sir ke saamne kaise baith sakte hain? (How can I sit in front of Sir?)," Upadhyay apparently told the policeman who asked him to take a seat.

The sources at AMRI said Preeta has been with the hospital since its inception in 1994 while Upadhyay had joined the group in the late 1990s, left and rejoined later.

The insiders said the staff could not have dumped inflammable materials in the ramp of the upper basement without Preeta's instructions. Preeta could not be contacted for comment.

Upadhyay was behind the use of the upper basement to house offices and the pharmacy, the insiders added.

"Todi was aware dumping inflammables in the basement and its use as office space were illegal…. Though he had asked Preeta a number of times to remove the inflammable materials, he accepted Upadhyay's advice on utilising the basement," an insider said.

He said that though Todi accepted Preeta's demand for recruiting more personnel for housekeeping and food and beverages — the departments under her — and refurbishing out-patient departments, some important decisions were kept on hold.

"Requests for recruiting a full-time as well as efficient fire officer was turned down by Preeta. The fire officer was recruited on a part-time basis and the person comes three times a week. Fire drills were never held," an official said.

The sources in the hospital said Todi used to be present in almost all the key decision-making meetings at the hospital, including the quarterly board meetings.

Every Saturday, Todi used to hold a management meeting with D.N. Agarwal, executive director, Dr. M.K. Chhetri, managing director, and Dr. Pronab Dasgupta, a member of the board of directors, and some vice-presidents.

"The management meeting used to focus on medical negligence, deaths, medical education and recruitment," said a source.

'Directors knew'

According to police sources, the AMRI directors being questioned in custody have admitted that they were informed of the fire early on Friday either by their subordinates or other directors.


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