Mumbai: The Bombay High Court on Friday said it would direct City and Industrial Development Corporation (CIDCO) to terminate the lease deed with the MGM Hospital in Navi Mumbai if it was found that the committee formed by the hospital was not managing its affairs as per its bye-laws and lease deed.

The division bench of Justices D K Deshmukh and R G Ketkar directed the hospital to file a reply to the public interest litigation filed by social activist Sandeep Thakur, which alleges that the hospital was not being run on charity basis.

The court also directed MGM Hospital to state whether the committee, which was formed to manage the affairs, was as per the terms of the lease deed. The reply is to be filed by
March 9.

Coming down on CIDCO -- planning authority for Navi Mumbai -- for its lackadaisical approach, the Court said, "You are wasting public money, funds and property and you are not even sorry about it. It shows you are not concerned."

According to the PIL, in 1975, CIDCO entered into an agreement with Rajmata Jijau Pratishtan (trust) whereby latter was to be alloted land for hospital. In 1989, the trust approached CIDCO, seeking transfer of land to MGM, which was done by entering into a tri-party agreement.

According to the lease deed, MGM was supposed to run the hospital for charitable purposes and not for profit, the PIL says, adding that the managing committee was supposed to have a nominee of the CIDCO, but at present it had no CIDCO representative.