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EMBARASSED MGM TRUSTEES KADAMS FORCED TO RESIGN WHILE SENIOR COUNSEL SRIHARI ANEY TO FIGHT THEIR CASE IN HIGH COURT

mgm-1Promoted by former State Education Minister Kamalkishore Kadam, the MGM Trust, Vashi was dragged to court for breach of agreement with CIDCO. NMTV News was the first report on how social activist Sandeep Thakur exposed that despite being a charitable trust, MGM Hospital at Vashi has turned into a profit making organization. The case has left the Kadams sweating as both the brother Sudhir Kadam and Dr. Nitin Kadam have resigned from the Pvt. Ltd. Company that runs the medical store in MGM hospital and have appointed senior counsel Srihari Aney to fight their case in the Mumbai High Court. It may be recalled that NMTV News had aired a report on March 14 on the PIL filed by social activist Sandeep Thakur against MGM Hospital at Vashi. The PIL exposed how the plot where the MGM Hospital stands today was first a public hospital built by CIDCO in the 1970s. A few years after constructing the hospital, CIDCO invited Jijamata Trust – a NGO to run the hospital. From the date of the agreement with CIDCO in 1970’s till 1990, the Jijamata Trust managed to run the hospital as per their agreement with CIDCO. In 1990, when Jijamata Trust reportedly raised its hands from running the hospital, the MGM Trust came forward to take over. A tri party agreement was signed between CIDCO, MGM Trust and Jijamata Trust on 6th February 1990 wherein it was agreed to hand over the hospital to the MGM Trust on the same clauses as were applicable to Jijamata Trust. These clauses included that : MGM would run the hospital on no profit no loss 30 beds would be used to give free of cost medical services to the needy 10 beds would be reserved for CIDCO employees And the out patients will be charged not more than the charges of medical services in civic hospitals However, the bureaucratic mischief started soon after this agreement was signed by way of the second agreement that was signed between MGM Trust and CIDCO two months. And though MGM was to continue working as a no profit no loss charitable trust to give medical services to the needy, the documents submitted by the MGM trust in the High Court showed that it’s been making profits to the tune of Crores. In the 2006-2007 alone, the MGM Trust made a profit of Rs. 1 Crore 62 Lacs 65 Thousand 385. This exposed that the MGM trust has converted from a charitable trust into a profit minting hospital. Besides this, the other clauses that seemed to be violated included : Appointment of three CIDCO officials on the MGM Board who would have equal powers to run the hospital as the other trustees and 25% of the total beds of the hospital would be run on concessional rates as decided by CIDCO. However, it been almost 19 years to this agreement and till date CIDCO has not appointed three officers on the MGM Board nor have they decided on the concessional rates that MGM is bound to charge on 25% beds in the hospital. And the fraudulent functioning of the trust is not limited to this. Sandeep Thakur had also filed an affidavit in High Court bringing to the court’s attention that that another major violation commited by MGM Hospital was that the ground floor of the hospital has been sublet to Durga Medical Foundation – a Pvt. Ltd. company belonging to Kadam – the promoters of MGM Trust. After 8 months of searching for justifications and perhaps finding none, Sudhir Kadam and Dr. Nitin Kdam have resigned from the company and have appointed senior counsel Srihari Aney to fight their case in the Mumbai High Court. Durga Medical Foundation Pvt. Ltd. – the medical store situated on the ground floor of MGM belongs to a private limited company that has Sudhir Kadam, Nitin Kadam, Lata Kadam and Archana Kadam on its board. Sudhir Kadam and Nitin Kadam are the trustees of MGM Trust as well. The MGM trust has been sublet to Durga Medical Store, again owned by the Kadams in complete violation of the agreement with CIDCO. Every year Rs. 18 lacs from this private company is paid to the Kadams as director’s remuneration. Besides this, the medical store is a separate entity making profits to the tune of Crores every year. Social activist Sandeep Thakur filed an affidavit against this violation in the Mumbai High Court in January 2009. After 8 months to this, the Kadams seems to have no justification for this violation and perhaps that why both Dr. Nitin Kadam and Sudhir Kadam have resigned from Durga Medical Foundation Pvt. Ltd. Besides this, the Kadams have also appointed senior counsel Srihari Aney to fight their case in High Court. Senior Counsel Srihari Aney has represented the Maharashtra government in the Enron arbitration case and fought against MSRDC disqualifying Reliance Infrastructures bid for toll at the five entry points to Mumbai. When a hospital run by influential promoters like the Kadams appoint a Senior Counsel like Srihari Aney to fight their case in High Court, its not difficult to understand there’s reason to worry for the MGM Hospital at Vashi. But above all of this, the case has exposed just how even reputed names like MGM group of hospitals indulge in activities that stain the noble profession of doctors for pure commercial interest at the cost of the rights of the poor and needy. Zeba Warsia – NMTV News.

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