BUSINESS LAW

ASSIGNMENT
SANS Healthcare Pvt. Ltd.

Owned By-

Ajesh S

Nidhi

Sathvic Kollu

Siddarth Baxi
 Table of Contents

Sl No. Content Page No.

1 Business Activity and Location of 2

the Company

2 Proposed investment in the 4

company (share capital and debt)
3 Proposed number of employees 5

4 Proposed investment in fixed 5

assets
5 List of specific actions required to 5
make the company operational
6 List of Acts, Rules and Regulations 8
that the company needs to comply
7 List of registrations, permissions, 9
licences and NOCs required
8 Specific procedure for obtaining 12
these registrations, permissions,
licences and NOCs
9 List of contracts to be entered into 15
by the company
10 Draft of contracts 16

11 References 32

1
Business Activity and Location of the Company

Hospitals themselves are in the state list (6) but the medical profession is in the concurrent list
(26).

Company – Sans Healthcare Pvt Ltd.

Location – Saket, New Delhi, Delhi

Business Activity – Setting up and operating a hospital

Sans Healthcare Pvt Ltd will be a general hospital or an acute care hospital. The main functional
departments of this hospital will be:

1. Admissions
 At the Admitting Department, the patient will be required to provide personal
information and sign consent forms before being taken to the hospital unit or
ward.
 If the individual is critically ill, then, this information is usually obtained from
a family member.
2. Finance Department
 Performs all the work related to the budget and ideal use of the items of the
budget.
 It prepares payrolls and monthly wages, and contracts of operations and
maintenance and purchases.
 It makes available all amounts of money required for procurement of all
materials and equipment.
3. General Services
 Support Services include services provided by Departments such as catering,
housekeeping, security, health & safety, switch, laundry and the management
of facilities such as parking, baby tagging, access control, CCTV etc.
4. Health & safety
 The role of the occupational health and safety department is to promote and
maintain the highest possible degree of health and safety for all employees,
physicians, volunteers, students and contractors, and actively participates in
quality, safety and risk initiatives.
5. Human Resources

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  Role is to provide a professional, efficient and customer focused service to
managers and staff and in turn facilitate the delivery of a professional, efficient
and customer focused service to patients.
6. Information Management
 Meaningful information can be used in quality management, continuous quality
improvement and peer review.
 By improving the quality of information, core data can be provided for
randomized clinical trials, outcomes research and many studies.
7. Medical Records
 Includes a variety of types of "notes" entered over time by health care
professionals, recording observations and administration of drugs and therapies,
orders for the administration of drugs and therapies, test results, x-rays, reports,
etc.
8. Patient Accounts
 The Patient Accounts Department answers all billing questions and concerns,
requests for itemized bills, and account balance inquiries.
 The patient accounts department also assists patients in their insurance benefits
for services rendered.
9. Purchasing & supplies
 Purchasing & Supplies Department is responsible for the procurement function
of the hospital.

The main medical departments of this hospital will be:

1. Emergency Department
 Also known as the emergency ward, is a medical treatment facility specializing
in emergency medicine, the acute care of patients who present without prior
appointment; either by their own means or by that of an ambulance.
 The emergency department of this hospital will operate 24 hours a day.
2. Anaesthetics
 Doctors in this department give anaesthetic for operations and procedures.
 An anaesthetic is a drug or agent that produces a complete or partial loss of
feeling.
 There are three kinds of anaesthetic: general, regional and local.

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 3. Cardiology
 Provides medical care to patients who have problems with their heart or
circulation.
4. Intensive Care Unit (ICU)
 A special department of a hospital or health care facility that provides intensive
treatment medicine and caters to patients with severe and life-threatening
illnesses and injuries, which require constant, close monitoring and support
from specialist equipment and medications.
5. Maternity
 Maternity wards provide antenatal care, delivery of babies and care during
childbirth, and postnatal support.
6. Pharmacy
 Responsible for drugs in a hospital, including purchasing, supply and
distribution.
7. Radiology
 The branch or specialty of medicine that deals with the study and application of
imaging technology like x-ray and radiation to diagnosing and treating disease.
 The Department of Radiology is a highly specialized, full-service department
which strives to meet all patient and clinician needs in diagnostic imaging and
image-guided therapies.

Proposed Investment (share and debt capital)

Costs In Rs.
1
Purchase of land (300*25*18,000) 13.5 Crores
Construction charges2 (300*25*1000) 75 Lakhs
3
Operation theatre 60 Lakhs
Medical equipment 35 Lakhs
Furniture 50,000
Inventory4 10 Lakhs
Total Cost 15.35 Crores
5
Authorised Capital 4 Crores
Long-term debt 11.35 Crores

4
Assumptions

1. Considering 25 beds hospital and assuming 300 sq ft per bed with Rs 18,000 per sq ft.
2. Rs. 1000 per square feet as construction charges and 300 per sq ft.
3. Assuming 4 operation rooms.
4. Assuming inventory for first 6 months of operations.
5. 4 promoters, Rs. 1 Crore with 10 Lakh shares each.

Proposed number of employees – 100 employees including doctors, surgeons, nurses,

departmental heads and other regular staff.

Proposed investment in fixed assets in the company – Rs. 14 Crores (Land, medical
equipment, furniture, inventory)

List of specific actions required to make the company operational:

Following are the pointers one needs to keep in mind and set in place for setting up hospital in
India:

Location:

 Need to check he physical location of the proposed business and area to be serviced in
terms of region, city, town and infrastructure (roads, communications, etc.), distances
from nearest main centre.
 Disease Incidence of the area to be checked, in case it is high than hospital should be
opened as it will also be favour by country’s government.
 Competitors –Main competitors in the area need to be analysed, their strategy like
guarantee of medical quality with emphasis on service quality, carry out Room Service
Program, Strive for Qualification of Workers, Social Medical Insurance Hospitals,
Reasonable price.

Hospital Services

Detailed description of the hospital services to be described in detail in accordance with

permitted medical services, a hospital can give to all people in the country. For this, following
things need to be take care of:
 Price of Medical Services
 Composition of revenue

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  Professional staff i.e. Doctors (must be holding a valid professional license and such
credentials shall be reviewed by the country’s Ministry of Health). In case, there is any
law for minimum % of domestic national would be given priority jobs, then the same
must be taken care of.
 Measures to Improve the Level of Medical Team and Medical Technology
 Support staff also to be taken importance like transport, finance, admin, etc.
 Training and Development for staff
Land and Medical Equipment
Land to be purchased and building to be constructed or to be taken on lease has to be decided.
If purchased, then following points to be take care
 -Land to be registered with Municipality of that country
 -Warehouse to be made, then appropriate systems for medical waste disposal,
prevention of infection, and medical records filing
If taken on lease, then working capital requirement to be managed as there is contractual
obligation to pay the lease payments on time.
However, in both, following things need to be take care off.
 As per country specific rules and regulation, what would be minimum capacity of the
hospital?
 Building must compliant with the medical and technical requirements historically
designated by the Country rules and must be equipped with the necessary medical
equipment and furniture
 To ensure Latest Medical Equipment’s to be used in hospital. It will be costly but in
some country custom duty or taxes are relaxed if purchased from other country
supporting it or setting up a hospital in poorer region.
 If old hospital to be acquired, then proper measures to be taken to improve the Medical
Facilities and Environments
 Construction of sanatorium to improve the environment of in-patient

Manufacturing/production of Medicines
The company has to decide whether they want to manufacture medicines along with hospital
services, which involves huge capital and government intervention (because of inclusion of
drugs).

6
Gestation period and Marketing
Need to control the time taken for initial setup and starting the operations. In gestation period,
company need to use Integrated Marketing Communications and proper Marketing Mode and
Choice of Media.

Business Insurance
New company must be insured against market and financial risk.

Banking
The company must open bank account(s) for all their banking needs. This will include current
accounts for itself, salary accounts for employees to which the salary might be credit. This will
also be required other banking needs such as accept payments through cards, issuing refunds
etc.
Hiring of employees
At the outset, employees will be recruited to fill the roles in the hospital. Non-core tasks such
as housekeeping can be outsourced. Doctors, nurses and technicians should be hired on either
a full time or a visiting arrangement.

Management and Organization Structure

 Who are the shareholders? Foreign nationals and Domestic nationals? Shareholding
pattern?
 Composition of Management Team of Hospital - High-level administrative personnel and
discipline leaders
 Functions to be define
 Compensation system - Pay of Doctors, support staff
 All department Policies need to be made

Project Finance
 Project feasibility report need to be prepared after finalization of hospital site.
 Investment return and cooperation mode to be analysed.
 Capital needs and capital utilization plan need to checked and reasons for the same
 Time for the capital need
 Estimate Expense and Income

7
Taxation
Following things need to be taken care
 Local Tax Registration Certificate (GST Registration Certificate)
 WHT on foreign payment
 Property Registration (This is included because the company would be req
Audit
Yearly audit should be conducted for stock and books of accounts.

Risks and Corresponding Countermeasures

 Risks of policy
 Operation risks - Resources of medical talents, Medical risks affect the continuous
operation ability of the privately operated hospitals.
 Market risks
 Financial risks

List of Acts, Rules and Regulations that the company needs to comply

Laws governing the commissioning of a hospital -

1. Atomic Energy Act 1962

2. Delhi Lift Rules 1942
3. Companies Act 1956
4. Indian Electricity Rules 1956
5. Delhi Electricity Regulatory Commission (Grant of consent for captive power plants)
Regulations 2002
6. Delhi Fire Prevention and Fire Safety Act 1986, and Fire Safety Rule 1987
7. Delhi Nursing Home Registration Act 1953
8. Electricity Act 2003
9. Electricity Rules 1956
10. Indian Telegraph Act 1885
11. National Building Act 2005
12. Radiation Protection Certificate from BARC
13. Urban Land Act 1976

8
 14. Indian Boilers Act 1923
15. The Clinical Establishment (Registration and Regulation) Bill 2007

Laws governing the practice and conduct of professionals –

1. The Indian Medical Council Act 1956

2. Indian Medical Council (Professional Conduct, Etiquette, and Ethics Regulations 2002)
3. Indian Medical degree Act 1916
4. Indian Nursing Council Act 1947
5. Delhi Nursing Council Act 1997
6. The Dentist’s Act 1948
7. AICTE Rules for Technicians 1987
8. The Paramedical and Physiotherapy Central Councils Bill 2007
9. The Pharmacy Act 1948
10. The Apprenticeship Act 1961

List of registrations, permissions, licences and NOCs required

Laws governing sale and storage of drugs and medications

1. Blood Bank Regulation Under Drugs and Cosmetics (2nd Amendment) Rules 1999
2. Drugs and Cosmetics Act 1940 and Amendment Act 1982
3. Excise permit to store the spirit, Central Excise Act 1944
4. IPC Section 274 (Adulteration of drugs), Sec 275 (Sale of Adulterated drug), Sec 276
(Sale of drug as different drug or preparation), Sec 284 (negligent conduct with regard
to poisonous substances)
5. Narcotics and Psychotropic Substances Act
6. Pharmacy Act 1948
7. Sales of Good Act 1930
8. The Drug and Cosmetics Rule 1945
9. The Drugs Control Act 1950
10. VAT Act/Central Sales Tax Act 1956

Laws governing the management of patients

9
 1. Birth and Deaths and Marriage Registration Act 1886
2. Drugs and Magic Remedies (Objectionable) Advertisement Act
3. Guardians and Wards Act 1890
4. Indian Lunacy Act 1912
5. Law of Contract Section 13 (for consent)
6. Lepers’ Act
7. PNDT Act 1994 and Preconception and Prenatal Diagnostic Tech (prohibition of sex
selection) Rules 1996 (Amendment Act 2002)
8. The Epidemic Disease Act 1897
9. Transplantation of Human Organ Act 1994, Rules 1995
10. The Medical Termination of Pregnancy Act 1971
11. Medical Termination of Pregnancy Rules 2003
12. The Mental Health Act 1987

Laws governing environmental safety

1. Air (prevention and control of pollution) Act 1981

2. Biomedical Waste Management Handling Rules 1998 (Amended on 2000)
3. Environment Protection Act and Rule1986, 1996
4. NOC from Pollution Control Board
5. Noise Pollution Control Rule 2000
6. Public Health Bye Law 1959
7. Water (prevention and control of pollution) Act 1974
8. Delhi Municipal Corporation (malaria and other mosquito borne diseases) Bye Law
1975
9. The Cigarettes and Other Tobacco Products (prohibition of advertisement and
regulation of trade and commerce, production, supply and distribution) Bill 2003
10. Prohibition of Smoking in Public Places Rules 2008
11. IPC Section 278 (making atmosphere noxious to health), Sec 269 (negligent act likely
to spread infection or disease dangerous to life, unlawfully or negligently)

Laws governing employment and management of manpower

1. Bombay Labor Welfare Fund Act 1953

2. Citizenship Act 1955
3. Delhi Shops and Establishment Act 1954

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 4. Employee Provident Fund and Miscellaneous Provision Act 1952
5. Employment Exchange (compulsory notification of vacancies) Act 1959
6. Equal Remuneration Act 1976
7. ESI Act 1948
8. ESI Rules 1950
9. Indian Trades Union Act 1926
10. Industrial Dispute Act 1947
11. Maternity Benefits Act 1961
12. Minimum Wages Act 1948
13. Negotiable Instrument Act 1881
14. Payment of Bonus Act 1956
15. Payment of Gratuity Act 1972
16. Payment of Wedges Act 1936
17. Persons with Disabilities Act 1995
18. PPF Act 1968 19. SC and ST ACT 1989
19. Shops and Factories Act (for national holiday)
20. TDS Act
21. The Essential Service Maintenance Act 1981
22. The Payment of Gratuity Act 1972
23. Workmen’s Compensation Act 1923

Laws governing medicolegal aspects –

1. Consumer Protection Act 1986

2. Indian Evidence Act
3. Law of privileged communication
4. Law of torts
5. IPC Section 52 (good faith), Sec 80 (accident in doing lawful act), Sec 89 (for insane
& children), Sec 90 (consent under fear) , Sec 92 (good faith/consent), Sec 93
(communication in good faith).

Laws governing the safety of patients, public and staff within the hospital premises

1. The Radiation Surveillance Procedures for the Medical Application of Radiation 1989,
Radiation Protection Rules 1971

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 2. AERB Safety Code no. AERB/SC/Med-2(rev-1) 2001
3. Arms Act 1950
4. Boilers Act 1923
5. Explosive Act 1884 (for diesel storage)
6. Gas Cylinder Rules 2004
7. Insecticide Act 1968
8. IPC Section 336 (act endangering life or personal safety of others), Sec 337 (causing
hurt by act endangering life or personal safety of others), Sec 338 (causing grievous
hurt by act endangering the life and personal safety of others)
9. NOC from chief fire office
10. Periodic fitness certificate for operation of lifts
11. Petroleum Act and Storage Rules 2002 (This will be applicable because the hospital
will store diesel for using a generator as power back up in case of power failure)
12. Prevention of Food Adulteration Act 1954
13. The Indian Fatal Accidents Act 1955

Laws governing business aspects

1. Contracts Act 1982

2. Copyright Act 1982
3. Custom Act 1962
4. FEMA 1999
5. Income Tax Act 1961
6. Insurance Act 1938
7. Sales of Good Act 1930

Specific procedure for obtaining these registrations, permissions, licences and NOCs

1.Procedure to Procure land for Hospital:

 Documents have to be submitted to Sub Registrar

 All documents relating to sale, conveyance, exchange, gift, settlement partition,
mortgage, lease, decrees and release of immovable property of the value of one hundred
rupees or more are compulsorily registrable documents under Section 17 of the
Registration Act, 1908.

12
Fees structure:

Registration fee is 1% of the consideration amount set forth or value as per circle rate,
whichever is higher plus Rs. 100/- for pasting fee.
Relinquishment deed : Rs. 1000/- per instrument plus Rs. 100/- for pasting fee
Lease deed of immovable property : Rs. 1000/- per instrument plus Rs. 100/- for
pasting fee.

2. Procedure to obtain NOC from Delhi Fire Services:

 Building plan to be submitted to Local Authority i.e. MCD, NDMC etc.

 The plan is forwarded to DFS as per clause 2.8 of Unified Building Bye Laws 2016.
Common Application Form should be submitted along with this.
List of Documents to be submitted:
1. Reference letter from local authority
2. 02 sets of key and layout plan
3. 02 sets of architectural plans duly marked with fire and life safety systems
4. 02 sets of Section & Elevation
5. 02 sets of Automatic sprinkler system drawings along with calculations as per IS 15105,
wherever required.
6. 02 sets of smoke management drawings, lift / staircase pressurization, along with
calculations as per NBC, wherever required.

3. Procedure to establish hospital under The Delhi Shops Act, 1954:

 A statement describing the particulars of the hospital has to be sent to the Chief
Inspector.
 The Chief Inspector shall, on being satisfied about the correctness of the statement,
register the establishment in the Register of Establishments, in such manner as may be
prescribed and shall issue, in a prescribed form a registration certificate to the occupier.

4. Procedure to seek authorization under Bio Medical Waste Management Rules, 2016:

 It is mandatory to obtain the authorization for generating Bio-medical wastes under

Rule 10 of Bio Medical Waste Management Rules, 2016
 An application in Form II has to be made to State Pollution Control Board and Pollution
Control Committee. The authority will grant provisional authorization in Form III.

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  The Form II contains particulars of the hospital and the details of bio wastes generated.
It also contains provision to fill up details for treatment of the waste and waste disposal
techniques.

Fee Structure to obtain NOC:

1000/- per annum upto 4 beds and additional Rs. 100 per bed per annum from fifth bed
onwards.

5.Procedure to obtain license for the usage and storage of Denatured spirit:

 Excise form-24 has to be filled for this purpose.

 The form has personal details as well as details of the hospitals that needs to be filled
in.
 The following documents have to submitted along with the form:
o Rent Agreement Deed of Proposed Site or if own relevant papers.
o Affidavit regarding no dues of excise or any other Government Department
o Affidavit regarding applicant/institution has not convicted under N.D.P.S.,
Excise Act,Molasses Act,I.P.C. or any criminal offence
o Three Blue Print Map Of Proposed use & storage deatured spirit godown with
marked spaces consisting signature of Applicant, Enquiry Officer, District
Excise Officer & Deputy Commissioner of district.
o Three Blue Print Map Of Proposed use & storage deatured spirit godown with
marked spaces consisting signature of Applicant, Enquiry Officer, District
Excise Officer & Deputy Commissioner of district.
o Three Blue Print Map Of Proposed use & storage deatured spirit godown with
marked spaces consisting signature of Applicant, Enquiry Officer, District
Excise Officer & Deputy Commissioner of district.
o Fire Proof certificate of Godown from concerned Authority.
o Sales Tax Registration & Sale tax Clearence Certificate from the concerned
Sales Tax Authority
o Character Certificate Of applicant issued by the officer not below the rank of
S.D.O./D.S.P. issued within six months from the date of application
o Any other document/documents which required by licensing authority./
Sanctioning Authority.
 The form has to be submitted to Deputy Commissioner of that District.

14
6. Procedure for Registration of Ambulances:

 Ambulance have to be registered by Transport Department in Delhi to make it available

for use in hospitals.
 It can be done only after approval of Committee of Registration of Ambulances.
 The following will be the norms for vehicles to be certified / registered as different type
of Ambulances: -
o A. Advanced Life Support Ambulance: Ambulance should be capable of
providing treatment of life-threatening medical emergencies through the use of
techniques such as endo - tracheal intubations, administration of drugs or
intravenous fluids, cardiac monitoring, and electrical therapy by a qualified
person.
o B. Basic Life Support Ambulance: Ambulance should be capable of providing
basic life support to the patients.
o C. Patient Transport Ambulance: A vehicle that is used for transporting patients
in non-emergency situations such as scheduled visits to a physician's office for
treatment, routine physical examinations, xrays or laboratory tests, or is used
for transporting patients upon discharge from a hospital or nursing home to
another hospital or nursing home or residence, etc.

15
 A CONTRACT BETWEEN HOSPITAL AND MEDICAL RETAILER

This following contract is made and entered into on Monday of 25th Feb 2019 between Sans
Healthcare Pvt Ltd., a hospital unit having its head Office at New Delhi, and Bloom Medical
Supplies Pvt. Ltd, a wholesale medicine retailer having its office at New Delhi

Sans Healthcare Pvt Ltd has a requirement of the following medicines for treating the patients
at its hospital

 Acetaminophen

 Ciprofloxacin

 Doxycycline

 Meloxicam

 Oxycodone
Whereas, Bloom Medical Supplies Pvt. Ltd is properly licensed, willing, and able to provide
these medicines for the purpose mentioned above, exactly within 4 days after the order is placed
excluding the public holidays at the following prices

Medicine Price

Acetaminophen 5000

Ciprofloxacin 7500

Doxycycline 4500

Meloxicam 3800

Oxycodone 12500

Note: The prices are subjected to change over time with the consent of both the parties.

Sans Healthcare Pvt Ltd., desires to appoint Bloom Medical Supplies Pvt. Ltd to supply the
above mentioned medicines and Bloom Medical Supplies Pvt. Ltd expresses their desire to
enter into an agreement with Sans Healthcare Pvt Ltd.

THIS DEED OF AGREEMENT WITNESS THE TERMS AND CONDITIONS AS

FOLLOWS:

16
1.That the Agreement shall come into force immediately and shall remain valid until any one
of the parties’ desires to exit the contract.

2.That the medicines mentioned above shall be supplied by Bloom Medical Supplies Pvt. Ltd
at the reception desk of Sans Healthcare Pvt Ltd.

3. That Sans Healthcare Pvt Ltd. reserves the right to change their specified delivery site for
any reasonable ground and Bloom Medical Supplies Pvt. Ltd shall be responsible to deliver the
medicines at the new site. The transportation cost for delivery at the new site will be decided
by both the parties.

4.That the quality and quantity of the medicines shall be as per specification given by Sans
Healthcare Pvt Ltd. as well as samples submitted by Bloom Medical Supplies Pvt. Ltd and
approved by Sans Healthcare Pvt Ltd.

5.That the delivery of the medicines shall be made by Bloom Medical Supplies Pvt. Ltd at their
own cost, management and responsibility.

6.That Bloom Medical Supplies Pvt. Ltd shall be fully responsible for delivery of the medicines
in good condition at the specified site of Sans Healthcare Pvt Ltd.

7.That Sans Healthcare Pvt Ltd’s representative shall inspect the goods at Bloom Medical
Supplies Pvt. Ltd and reserves the right to reject any medicines if the representative considers
those to be inferior quality to the approved samples.

8.That the medicines rejected by the representative(s) of Sans Healthcare Pvt Ltd shall be
replaced by Bloom Medical Supplies Pvt. Ltd and shall bear all risks/costs of the medicines
rejected by Sans Healthcare Pvt Ltd

9.That the transportation of the medicines shall be made by Bloom Medical Supplies Pvt. Ltd
within 4 days as the quality control check done by the representative of Sans Healthcare Pvt
Ltd.

10.That Sans Healthcare Pvt Ltd reserves the right to change the quantity of items if they feel
necessary during the validity of this Agreement.

11.That the custom duty, VAT or other Taxes and cost of transportation, or any other incidental
charges, if required in connection of the delivery of goods shall be borne by Bloom Medical
Supplies Pvt. Ltd.

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12.That the Payment shall be made by Sans Healthcare Pvt Ltd from head office in Currency
through A/C payee Cheque only on production of invoice along with delivery dockets
confirming receipt of medicines by Sans Healthcare Pvt Ltd 's Representative at site.

13.That Sans Healthcare Pvt Ltd may allow Part Payment for running bill on the request in
writing of Bloom Medical Supplies Pvt. Ltd.

14.That if Bloom Medical Supplies Pvt. Ltd. shall in any manner fail to carry on the work or
performance of the terms of the Agreement with due diligence or violates any of the terms of
this Agreement Sans Healthcare Pvt Ltd shall be entitled to cancel The Agreement and demand
damages.

15.That if Bloom Medical Supplies Pvt. Ltd. fails to deliver the medicines as per agreed date,
penalty will be imposed by Sans Healthcare Pvt Ltd at the rate of (1%) of total contract value
for each day of delay.

16.That the terms of this Agreement shall be GOVERNED by the Laws of the Land i.e.
Jurisdiction of High court, New Delhi.

Signed on Monday of 25th Feb 2019 for and on behalf of the Bloom Medical Supplies Pvt.
Ltd and Sans Healthcare Pvt Ltd as follows:

Directors, Sans Healthcare Pvt Ltd Manager, Bloom Medical Supplies Pvt. Ltd

1. Sathvic Kollu 1. Rahul .S

2. Ajesh.S

3. Siddharth Baxi

4. Nidhi

WITNESSES 1. Ankit Awate

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 EMPLOYMENT AGREEMENT
This agreement is between SANS Healthcare Pvt Ltd having its place of business at Saket New
Delhi and Dr. Ashok Kumar, MD DM, resident of No. 234, Dwarika House, Mayur Vihar, New
Delhi-110010.
Agreement

1. Dr. Ashok Kumar is henceforth employed by SANS Healthcare Pvt Ltd. to provide advance
treatment in cardiovascular segment. The employment term begins from 21 st March
2019. As per the agreement, the Physician shall use his expertise to provide service and
support as an employee of SANS Healthcare Pvt Ltd. The Physician also agrees to abide
by the rules and regulations stated by the employer.
2. The employer, SANS Healthcare Pvt Ltd., agrees to compensate Dr. Ashok Kumar with an
initial annual salary of Rs. 18,23,000/-. The employer also agrees to provide an insurance
coverage of Rs. 10,00,000/- on an annual basis.

As per the agreement the Physician agrees to the following:

1. Adhere to the medical practices and rules as set by IMA.
2. Provide the services and support as required by the Hospital without flawing.
3. Complete all medical records in a timely manner, by complying with the rules and
regulations of the hospital.

As per the agreement SANS Hospital Pvt Ltd. agrees to the following:
1. Pay the salary on the last day of each month.
2. Provide the required office space and facilities to enhance the functioning of the
Physician.
3. Perform all necessary billing and collection services for all Employer patients seen or
treated by Physician

Term: The agreement shall remain effective for 5 years starting from 21 st March 2019,
unless terminated early due to the following reasons:
1. Mutual agreement for termination without cause upon 60 days of notice period.
2. Act of god, which includes Death, natural calamities affecting the functioning of the
Hospitals etc.
3. Act that involves suspension or revoking of medical certificate of Dr. Ashok Kumar.
4. Failure to pay the salary or the promised insurance coverage to Dr. Ashok Kumar by the
hospital. The hospital will have to pay a compensation charge of either two-year salary
or Rs. 75,00,000/-, whichever is lesser.

Signed on Monday of 11th March 2019 for and on behalf of the Dr.Ashok Kumar and
Sans Healthcare Pvt Ltd as follows:

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Directors, Sans Healthcare Pvt Ltd Physician(Doctor)

1. Sathvic Kollu 1. Dr. Ashok Kumar, MD DM

2. Ajesh.S

3. Siddharth Baxi

4. Nidhi

WITNESS 1. Ankit Awate

20
 CONTRACT BETWEEN HOSPITAL AND LAND OWNER
The parties make this Agreement this 25th day of February, 2019. This Agreement supersedes
and replaces all obligations made in any prior Contract to Purchase or agreement for sale
entered into by the parties.

1. Ranbir Chaudhary, the "SELLER," from Mehrauli, South Delhi, agrees to sell and Sans
Healthcare Ltd., Saket, South Delhi the "BUYER," agrees to buy, the premises
described in point 2, on the terms set forth below.
a) BUYER may require the conveyance to be made to another person or entity
("Nominee") upon notification in writing to SELLER at least five business days prior
to the date for performance.
b) Designation of a Nominee shall not discharge the BUYER from any obligation under
this Agreement and BUYER hereby agrees to guarantee performance by the Nominee.
2. The premises consist of the land containing approximately 0.172 acres, more or less,
specifically described in a deed recorded in the Indian Registry of Deeds at Book 153,
Page 26, [Certificate No. T-50909] a copy of which is not attached.
3. The purchase price for the Premises is Rs. 13.5 Crores of which Rs. 5 Lakhs are paid
as a deposit with Contract to Purchase; and Rs 13.45 Crores are to be paid in instalments
at the time for performance by bank, cashier's or certified check or by wire.
4. The SELLER shall deliver the deed and the BUYER shall pay the first instalment of
the purchase price at 5:00 pm on the 7th day of March, 2019, at the Registry of Deeds,
or at such other time and place as is mutually agreed.
5. Time is of the essence as to each provision of this agreement. Unless the deed and
other documents required by this Agreement are recorded at the time for performance,
all documents and funds are to be held in escrow, pending prompt rundown of the title
and recording. SELLER'S attorney may disburse funds after 5:00 p.m. of the next
business day following the date for performance, provided that the recording attorney
has not reported a problem outside the recording attorney's control.
6. The SELLER shall convey the Premises by a good and sufficient quitclaim deed
running to the BUYER or to the BUYER'S nominee, conveying good and clear record
and marketable title to the Premises, free from liens and encumbrances.
7. BUYER'S obligations are contingent upon the availability (at normal premium rates)
of an owner's title insurance policy insuring BUYER'S title to the premises without

21
 exceptions other than the standard exclusions from coverage printed in the current
policy cover, form currently in use for survey matters and real estate taxes.
8. The SELLER shall execute and deliver simultaneously with the delivery of the deed
such certifications and documents as may customarily and reasonably be required by
the BUYER'S attorney, BUYER'S lender, BUYER'S lender's attorney or any title
insurance company insuring the BUYER'S title to the Premises, including, without
limitation, certifications and documents.
9. The SELLER'S spouse hereby agrees to release all statutory, common law or other
rights or interest in the Premises and to execute the deed, if necessary.
10. The BUYER shall have the right to examine the Premises within forty-eight (48) hours
prior to the time for performance or such other time as may be agreed and upon
reasonable notice to SELLER for the purpose of determining compliance with this
point.
11. If the SELLER cannot convey title as required by this Agreement or cannot deliver
possession of the Premises as agreed, or if at the time of the delivery of the deed the
Premises do not conform with the requirements set forth in this Agreement, upon
written notice given no later than the time for performance from either party to the
other, the time for performance shall be automatically extended for thirty (30) days,
except that if BUYER'S mortgage commitment expires or the terms will materially and
adversely change in fewer than thirty (30) days, the time for performance set forth in
point 5 shall be extended to one business day before expiration of the mortgage
commitment.
12. The BUYER shall have the right to accept such title to the Premises as the SELLER
can deliver at the time for performance and if extended, shall have such right at the time
for performance, as extended.
13. The BUYER shall also have the right to accept the Premises in the then current
condition and to pay the purchase price without reduction of price.
14. Upon notice in writing of BUYER'S decision to accept the Premises and title, the
SELLER shall convey title and deliver possession.
15. If the BUYER or BUYER'S nominee breaches this Agreement, all funds paid or
deposited by the BUYER shall be paid to the SELLER as liquidated damages.
16. The BUYER and SELLER agree that in the event of default by the BUYER the amount
of damages suffered by the SELLER will not be easy to ascertain with certainty and,

22
 therefore, BUYER and SELLER agree that the amount of the BUYER'S deposit
represents a reasonable estimate of the damages likely to be suffered.
17. The BUYER'S obligation to purchase is conditioned upon obtaining mortgage
financing in the amount of Rs. 11.35 Crores at prevailing rates and terms by YES Bank.
If, despite reasonable efforts, the BUYER has been unable to obtain such financing the
BUYER may terminate this Agreement by giving written notice that is received by
SELLER or SELLER'S agent by 5:00 p.m. on the calendar day after the date set forth
above.

Upon signing, this document, on the 25th March, 2019, in Mehrauli, will become a legally
binding agreement. If not understood, seek advice from an attorney.

Name of the BUYER: Name of the SELLER:

Sans Healthcare Ltd. 1. Ranbir Chaudhary
Directors
1. Sathvic Kollu

2. Ajesh.S

3. Siddharth Baxi

4. Nidhi

23
 CONTRACT BETWEEN HOSPITAL AND BANK
This Agreement made and entered on Tuesday, 12th March 2019, is between Sans Healthcare
Pvt Ltd. (borrower), a multi-speciality hospital unit having its head Office in New Delhi and
Yes Bank Ltd., a banking company within the meaning of the Banking Regulation Act 1949,
at its registered office in Pushp Vihar, New Delhi, where;
a) the Borrower has requested the Bank to provide a Term Loan; and
b) the Bank has agreed to provide such a loan to the Borrower on the terms and conditions
hereinafter appearing.
IT IS AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS HEREAFTER:
1. Expressions defined within the General Clauses Act, 1897, shall carry the same
meaning as assigned to it under the said Act.
2. Any reference to any enactment or statutory provision is a reference to it as it may have
been, or may from time to time, be amended, modified, consolidated or re-enacted.
3. The Bank agrees, based on the Borrower's request, representation, warranties,
covenants and undertakings as contained herein and in the application for Term Loan
to lend to the Borrower and the Borrower agrees to borrow from the Bank, the Term
Loan on the terms & conditions as fully contained in this Agreement.
4. The relationship between the Bank and the Borrower, as lender and Borrower shall
commence from the date of this Agreement and shall subsist until all monies due and
payable by the Borrower to the Bank under this Agreement, shall have been fully paid
to and received by the Bank.
5. The Bank shall credit the Term Loan to a designated bank account, details provided in
the Schedule in the name of the Borrower to be held with the Bank itself or with any
other bank or such bank to whom Electronic Debit Instructions are given.
6. The interest on the Term Loan shall accrue from the date of the Bank's disbursement of
the Term Loan to the Borrower and shall be computed:
a) taking the basis of 365 days in a year/366 days for a leap year
b) at the Interest Rate as stated in the Schedule or as maybe prescribed by the Bank from
time to time; and
c) on the actual amount outstanding on the last day of the preceding period.
7. The Borrower agrees and acknowledges that the Term Loan shall bear Processing
Charges and other such other charges as mentioned in the Schedule, which the

24
 Borrower shall reimburse to the Bank in addition to the Term Loan and the interest
accrued thereon.
8. Upon happening of any event of default including non-payment of EMI, interests, fees,
charges, taxes and costs will attract interest at the Defaulted Interest Rate at the rate
specified in the Schedule on the principal outstanding from the date of default till the
date the default is cured.
9. The Bank shall at its sole discretion, be entitled to revise the Interest Rate and Default
Interest Rate on the Term Loan, without, assigning any reason for such revision and
such revised rates shall thereafter apply to the Borrower.
10. The Term Loan (including the principal, interest thereon and any other charges,
premiums, fees, taxes, levies or other dues payable by the Borrower to the Bank in
terms of this Agreement) shall be repayable by the Borrower to the Bank:
a) at the Branch (or at any branch of Bank or at any other place as maybe notified by the
Bank);
b) by way of EMI towards repayment of principal and interest;
11. If any amount payable herein falls due on a day which is not a Business day, then such
amount shall be paid on a Business day immediately preceding such day. Business day
shall mean a day on which the lending office of the Bank is open for business and
excludes Sundays and public holidays as defined under the Negotiable Instrument Act,
1881.
12. No notice, reminder or intimation will be given to the Borrower regarding his/ her
obligation to pay the EMI regularly on each due date as it shall entirely be his/ her
responsibility. Any delay or default in payment of any EMI shall make the Borrower
liable to pay to the Bank, interest at the Default Interest Rate (for the period of such
default) as mentioned in the Schedule.
13. The Bank shall:
a) In the event it is unwilling to continue the Term Loan on account of regulatory or other
reasons, the Bank shall have the sole right at any time during the tenor of this
Agreement to recall the entire or part of the Term Loan without assigning any reason
thereof.
b) Be entitled at its absolute discretion and in the manner it deems fit to disclose/publish
any information about the Borrower, his/ her account relationship with the Bank and/
or any default committed by him/ her in repayment of amounts/payment of interest to
its head office, other branch offices, affiliated entities, Reserve Bank of India, other

25
 Banks, institutions, , its auditors, and such third parties including rating agencies as the
Bank may, in its sole and exclusive discretion, deem fit and proper.
c) The Borrower hereby gives its consent to disclosure by the Bank to such service
provider/ third parties confidential information relating to Borrower and disclaims any
liability that may arise by such disclosure by the Bank.
14. The Borrower declares that the information provided in the application for the Term
Loan and as contained herein is complete and true in all respects.
15. There are no threatened or pending claims, demands, litigation or liquidation
proceedings against the Borrower;
16. The Borrower declare that they are not prohibited by law from availing of the Loan.
17. Sans Healthcare Ltd. understands and acknowledges that the loan if provided by the
Bank, based on this agreement submitted by them, is a commercial transaction and they
waive any defence under usury or other law relating to charging of interest.
18. The Bank may, by a written notice to the Borrower, declare the Term Loan to have
become due and payable forthwith upon the occurrence of any one or more of the
following events:
a) The Borrower fails to pay to the Bank any amount on or before and payable under this
Agreement or furnish the PDCs or any other document/ agreement as may be required
by the Bank from time to time or if any PDCs are dis-honoured or EDI are not acted
upon.
b) The Borrower defaults in performing any of his/ her obligations under this Agreement
or breaches any of the terms & conditions of this Agreement.
c) Any of the information/document provided by the Borrower to avail the Term Loan or
any of the Representations and Warranties contained herein or Application form is
being found to be or becoming incorrect or untrue;
d) If there is reasonable apprehension that the Borrower is unable to pay his/ her debts or
any person other than the Bank commencing proceedings to declare the Borrower
insolvent or if the Borrower shall become bankrupt or insolvent or commit act of
insolvency.
19. It is clarified that upon occurrence of an Event of Default, the Bank shall be entitled to
adopt civil and/ or criminal proceedings against the Borrower, including for dishonour
of cheques under Section 138 of Negotiable Instruments Act.
20. The Parties agree that in any legal action or proceeding arising out of or in connection
with this Agreement, the entries made in the Books of Accounts maintained by the Bank

26
 shall be prima facie evidence or debt and of all amounts payable, as therein recorded,
by the Borrower to the Bank.
21. The Parties confirm that this Agreement and its Schedule and any other documents
executed pursuant to this Agreement shall represent one single Agreement between the
Parties.
22. This Agreement shall be subject to Indian laws.
23. Unless the same falls within the jurisdiction of the Debts Recovery Tribunal established
under the Recovery of Debts due to Banks end Financial Institution Act, 1993, any and
all claims and disputes arising out of or in connection with this Agreement or its
performance shall be settled by arbitration by a single Arbitrator to be appointed by the
Bank. The arbitration shall be held, in the city where lending office of the Bank is
situated, in accordance with the provisions of the Arbitration and Conciliation Act,
1996.
24. Subject to the provisions of the Recovery of Debts due to Banks Financial Institutions
Act, 1993 and the arbitration provisions, the Courts in the city where lending office of
the Bank is situated shall have exclusive jurisdiction in relation to this Agreement and
all matters arising in connection herewith.

27
SCHEDULE

1. Date and Place of Execution of the Agreement: 12th March 2019, New Delhi
2. Address of the concerned Branch: YES Bank Ltd., New Delhi
3. Borrower Details:
a) Name: Sans Healthcare Ltd.
b) Address: Saket, New Delhi, Delhi.
4. Particulars of the Loan:
a) Purpose: For the purpose of purchasing land and developing it into a hospital.
b) Amount: Rs. 11.35 Crores
c) Rate of Interest: 12.5% per annum computed at monthly rests
The interest rate is subject to variation in consonance with RBI directions, statutory and
regulatory requirements, conditions of money market, availability of loanable funds etc.
Base Rate and Margin are subject to change from time to time.
d) Mode of Disbursement:
Credit of disbursements to account no. 017701234503
Of Sans Healthcare Ltd. maintained with YES Bank at its branch situated at Pushp
Vihar.
Tenure: 2 years
Repayment: 15 years
The loan granted herein is recallable on demand in the absolute discretion of the Bank.
In the event of recall by the Bank, the outstanding loan facility shall become due and
payable forthwith.
e) Charges for Late Payment: 5 % per month on overdue amount
f) Charges:
i. Processing Fee: 1.25% of the loan amount
ii. Cheque Dishonour Charges: Rs. 300 for first presentation and Rs. 100 for subsequent
presentation
iii. No Due Certificate/No Objection Certificate (NOC): Rs. 500 per NOC

28
The Borrower declares that the Agreement was duly read and understood by it prior to
Affixing signatures hereunder. The parties hereto have signed this agreement in
acceptance of all the terms and conditions stated herein on 12th March, 2019 in Pushp
Vihar.

Name of the Borrower: Name of the Lender:

Sans Healthcare Ltd. YES Bank
Directors Branch Manager
1. Sathvic Kollu 1. Shubham Sharma

2. Ajesh.S

3. Siddharth Baxi

4. Nidhi

29
 AN AGREEMENT BETWEEN HOSPITAL AND PATIENT
This following Agreement is made and entered into on Monday of 25th Feb 2019 between Sans
Healthcare Pvt Ltd., a general hospital unit having its head Office at New Delhi, and the patients
availing services at the Sans Healthcare Pvt Ltd.

Where the Sans Healthcare Pvt Ltd. has formulated a SCHEME under which the individuals who are
enrolled under the scheme either individuals or in-groups are provided with hospitalization benefits
AND WHEREAS in pursuance of the providers of an agreement with the Sans Healthcare Pvt Ltd. Has
agreed to extend insurance cover to the members on the terms and conditions, hereinafter appearing.

THIS DEED OF AGREEMENT WITNESS THE TERMS AND CONDITIONS AS FOLLOWS:

1. That the Sans Healthcare Pvt Ltd. shall provide to each member, of the scheme, with an
identification card with recent photograph of the member, his/her name, age, sex, name of
insurer, policy no, validity and card no. The details of the benefits to which the member is
eligible and conditions thereof and the monetary limit of the insurance cover duly signed by
the member and attested by an authorized person of Company which shall be presented for
purpose of assisting hospital in verifying member eligibility. For any verification or clarification
with regard to the status/eligibility of any member of the scheme during the validity period of
the scheme the patients can consult the management of Sans Healthcare Pvt Ltd.

2. The Sans Healthcare Pvt Ltd. shall provide thirty days (30 days) advance notice to the members
of the scheme of any changes in covered services or conditions of coverage applicable thereto.

3. That the Sans Healthcare Pvt Ltd. shall admit the member of the Scheme into the hospital
after due verification of the member's eligibility by verifying all the details given on the identity
card and give the member appropriate treatment within the monetary limit specified therein,
for covered services only.

4. In case the if the hospital finds any tampering, false or incorrect information or anything to
that effect in the identification card of any member of the scheme, the membership will be
cancelled immediately and necessary action will be taken by the management of Sans
Healthcare Pvt Ltd.

5. The patient discharge section shall send to the management of Sans Healthcare Pvt Ltd. the
original of the discharge summary along with all original bills, prescriptions,
diagnostic/investigation reports, pathological reports accompanied by the claim from duly
signed by insured within 7 days from the date of discharge of the member from the Patient
discharge section. No claim shall be entertained after 30 days from the date of discharge of
the member of the scheme.

6. The hospital shall ensure that all members of the Scheme are admitted/treated as the case
may be on a priority basis in this context means making available to the members, services
like admission/treatment, beds on an urgent basis. In case there is no accommodation
available for the members in the scheme, the management shall make all attempts to
accommodate and admit the member to other Hospital/Nursing Home, subject to the
confirmation from the concerned member.

30
 7. The Sans Healthcare Pvt Ltd. will ensure the highest level of service to its members. The
members of the scheme shall be free to visit the hospital to check quality standards, review
and discuss treatment. During such visit and enquiries, the representatives of the Sans
Healthcare Pvt Ltd. shall have full access to the member patient's medical records.

8. The Sans Healthcare Pvt Ltd. as well as the members of the scheme have a right to terminate
this agreement at any time without assigning any reason by giving a 30 days’ prior notice.

9. The Sans Healthcare Pvt Ltd. shall not take any deposit of any kind or any amount of money
in lieu of deposit at the time of admission from the members of the company.

10. The Sans Healthcare Pvt Ltd. shall treat the members in the hospital only for the required
number of days for treatment and carry out only the required investigations/procedures for
the particular ailment or disease as the case may be for which the member has been
admitted/checked as per guidelines to be followed.

11. The Sans Healthcare Pvt Ltd. shall charge the individuals with

a) Telephone Charges, b) Ambulance Charges, c) Registration / File Charges, d) Extra diet

Charges, so incurred by the member or any of his family members during their stay in the
Provider Hospital.

Signed on Tuesday of 12th Mar 2019 for and on behalf of Sans Healthcare Pvt Ltd as follows:

Directors, Sans Healthcare Pvt Ltd

1. Sathvic Kollu

2. Ajesh.S

3. Siddharth Baxi

4. Nidhi

WITNESSES 1. Ankit Awate

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References

https://www.disabled-world.com/definitions/hospital-departments.php

https://www.quora.com/How-many-employees-does-a-250-bed-hospital-have-on-average

https://www.magicbricks.com/Property-Rates-Trends/Commercial-Office-Space-rates-Saket-in-New-Delhi

https://www.quora.com/How-much-money-is-needed-to-set-up-a-hospital-in-India

https://www.wazzeer.com/blog/starting-healthcare-business-india/
https://www.indiafilings.com/learn/starting-healthcare-business/
http://setup-private-hospital.blogspot.com/

https://doctors.practo.com/setting-up-hospital-in-india-guide/

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