Bengaluru, DHNS: Activists and local politicians have decided to move court as the government has gone ahead with the signing of the MoU with Abu Dhabi-based businessman B R Shetty to build new hospitals on the premises of the government hospital in Udupi.

The activists said that handing over 3.88 acres of government hospital land to Shetty’s firm was against public interest and as per the memorandum of understanding (MoU), there is no involvement of local representatives in the monitoring committee set up to oversee the project.

K Raghupati Bhat, ex-MLA from Udupi, said that the project lacked transparency. “I am not against privatisation. But, if it is a private-public partnership, the process will have to be in accordance with the Transparency Act. The land in question was donated by Haji Abdullah, and now, the original papers of donation seem to be missing. We are moving the court, challenging the project,” he said.

According to the MoU, the proposal was submitted by B R Shetty, chairman of BRS Health and Research Institute Private Limited, to the Department of Health and Family Welfare. As per the proposal, a 200-bed government hospital will be built by the group and it will offer 100% free service to all ‘health insurance beneficiaries’. On the same land, Shetty has proposed to construct a 400-bed multispeciality hospital, where emergency treatment under maternal and child health services will be free of cost.

Psychiatrist Dr P V Bhandary said maternal and child health services were already free of cost.

“Yes, it is free. But the cost will be fully reimbursed by the government as per the new policy. What special service is being offered by the group then? As per the project, the group will pay the salaries of nurses and doctors, besides managing the hospital. The monitoring committee does not include people’s representatives. Moreover, where is the roster system of appointing the staff?” he said.