Raja asked for crores from Tatas for hospital in constituency,got nothing

“The grant has not been given since the government was initially required to spend approximately Rs 82 crore,which was not done… Since this was not happening,not even a rupee has been given to the project,” Dorabji Tata Trust Managing Trustee A N Singh wrote in an email,responding to a questionnaire sent by The Indian Express.

The newspaper has copies of over a dozen letters sent to the Tatas,some by Raja himself on his official letterhead as Telecom Ministrer,and others by officials in the ministry,the local MLA as well as Tamil Nadu IAS officers. These papers were submitted in court today.

The Tata Group first cited its inability to pay the money,noting that one of its trusts had already sanctioned 8 crore for a government hospital in the district “at Raja’s instance”. When the minister continued to send letters,the Group agreed to provide a maximum of Rs 20 crore for the medical college-cum-hospital.

The communication on the proposed hospital grant began in June 2008,when spectrum was being provided to telecom companies. On June 11,MLA of Andimadam,Perambalur,S S Sivasankar wrote a letter to Ratan Tata,with a copy marked to Raja,seeking Rs 50 crore for the proposed hospital-cum-medical college. On the same date,Raja forwarded Sivasankar’s letter to Tata,noting: “I shall be obliged if you could kindly consider the request favourably.”

Tata replied on June 26 that he has “requested our philanthropic Trusts to explore the possibility of assistance to the medical college”.

Despite the Tatas not committing anything,a Dean who had already been appointed,Dr Balasubramanian,wrote to Raja’s private secretary R K Chandolia on November 1,2008,calling the project proposal ‘Building for the Perambalur Medical College sponsored by the Tatas’.

When things did not move at the desired pace,Raja wrote another letter to Tata on January 14,2009: “I will be grateful if the matter is expedited early… the details for the construction have been provided to Niira Radia for your consideration.”

On February 10,2009,Tamil Nadu Health Secretary V K Subburaj wrote a letter to Tata,seeking “release of Rs 51 crore from your Trust”.

Managing Trustee of the Trust A N Singh wrote to Raja the next day: “The Trust is unable to make grant for the construction of the hospital and has deferred it for consideration in the next financial year.”

Trustee R K Krishna Kumar also echoed this in his February 24 letter to Raja. “You will recall that at your instance one of our Trusts had earlier donated Rs 8 crore to the (government) hospital… the present circumstances in the current year do not permit us to do so.”

That Rs 8 crore was cleared in response to a request in July 2007 to support the cost of upgradation of medical facilities at the Government Hospital in Perambalur,together with some taluka hospitals. Of this sanctioned amount,A N Singh told The Indian Express,only a sum of Rs 3.26 crore was eventually released by the Trust as review by an external expert (a practice with the Tatas) showed slow progress on the upgradation.

When Raja’s men persisted with their reminders,on July 1,2009,A N Singh wrote another letter to the minister outlining the Trust’s commitment. “The Trust will consider a grant up to a maximum of Rs 20 crore… the grant in normal course is to be utilised for the purchase of necessary equipment,machinery and related infrastructure… however,as a special case,the request having come from you,we have agreed that a maximum of 20 per cent of the grant could be used towards the cost of building construction.”

Chandolia wrote back on July 9: “Honourable minister has desired that a cheque of entire Rs 20 crore may be made ‘As a Special Case’ as an upfront payment in the name of the hospital authority.”

When the money still didn’t come through,Raja expressed displeasure in a September 10,2009,letter to Ratan Tata: “… although about two months have passed nothing has been heard in this matter from Sir Dorabji Tata Trust.”

On September 15,Tata wrote back: “I wish to inform you that we have never made a grant of this size to any external recipient in the Trusts’ history… The grant to the Perambalur hospital was given as a very special case… The Trust will not be able to deviate from the disbursement mandate… However,the Trust will,I am sure,be prompt in disbursements to the hospital authority which I trust meet the registered charity criteria.”