Income tax sleuths raid Apollo Hospitals

By: |
Chennai | Published: January 6, 2016 12:57:00 AM

Over 250 Income Tax officials, in nearly 50 separate teams, conducted the operation at offices across the country

In a major swoop across the country, officials from the Income Tax Department have raided the premises, including the corporate office, of India’s leading healthcare company Apollo Hospitals Enterprise, and the office of its Chairman and Managing Director.

Sources here pointed out that over 250 officials of the I-T department, in nearly 50 separate teams, began their search from 9 am in the morning. When contacted a senior official of I-T department confirmed the developments but refused to talk further.

“The search is going on across the country and we have no comments to make at this point of time,” the official said adding “possibly the raid will continue tomorrow too (Wednesday).”

In a late evening statement, Apollo Hospitals’ spokesperson, said: “The I-T department visited our hospitals today and we extended our complete co-operation to them. We have always conducted ourselves with the highest degree of diligence and would like to reassure our patients, shareholders and stakeholders that we shall uphold their trust and faith in us.”

Started by Dr Pratap C Reddy over 30 years ago in Chennai, Apollo Hospitals has been growing steadily over the years. The company has close to 9,000 beds across 64 hospitals (including managed ones) and is trying to add around 900 beds in the current fiscal. It has projected to be a 10,000-bed hospital chain in the next two years and has earmarked over Rs 2,500 crore of investments.

It may be recalled that earlier last year (2015), Apollo Hospitals had restructured its operations dividing responsibilities to four daughters of Pratap Reddy.

While Preeta Reddy was elevated to look after overall growth of the company, Suneeta Reddy was appointed as managing director of the company.

The company, which runs specialty clinics (for dental, diabetes, mother and child care) under Apollo Health and Lifestyle Limited (AHLL) has plans to raise Rs 500 crore through a stake sale in AHLL. The parent AHEL has also embarked upon raising funds to expand its bed capacity in both organic and inorganic ways.

For the September quarter ended 2015, AHEL had reported a growth of 2.5% in profit to Rs 93.7 crore, registering a 18.6% growth in revenue to Rs 1,367 crore as compared to Rs 1,153 crore in Q2 of  the previous fiscal.

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