One of India’s leading hospital chains, Fortis, has allegedly violated the terms under which it was allotted land in the city of Gurgaon on subsidised rates for the construction a medical facility by constructing a luxury gym and Pevonia-branded spa within the facility’s structure.

Fortis has partnered with wellness brand Pevonia to operate a high-end gym and spa which measures nearly 12,000sq ft (1,115sq m) within the hospital’s premises in the northern state of Haryana, according to Dr Dilpreet Brar, regional director of Fortis Gurgaon.

Officials of the Haryana Urban Development Authority (HUDA) allotted Fortis 11.5 acres, where the hospital now stands, at a heavily subsidised rate of Rs 3,552 (US$59, €43, £34) per square yard, in 2004 – according to The Times of India. Real estate experts say the price per square yard in the region was close to Rs10,000 (US$166, €122, £97) for other developments.

Clauses 3,4 and 5 of the HUDA Act 1977 states “The site shall not be used for the purpose other than the one for which the land is allotted. If you do not use the land for the specified purpose, it will revert to HUDA along with the structure, if any.”

TC Gupta, Haryana’s principal secretary of town and country planning told The Times of India that if the violations are confirmed, the government could close down that section of the hospital.

Dr Brar justified Fortis’ decision to open this spa within the hospital, “We believe in wellness and happiness, which justifies the presence of Pevonia.” Admission to the hospital as a patient is not a requirement for access to Pevonia’s services. The gym-spa has a membership scheme that’s open to anyone. An individual subscription costs Rs90,000 (US$1,500, €1,100, £900) and a membership for a couple is priced at Rs135,000 (US$2,200, €1,700, £1,300).

“Fortis is now known as a luxury, five-star hospital,” officials of Pevonia told The Times of India. “We are known for our five-star gyms and spas, though in a hospital we make it a point that hygiene is maintained so that outsider clients can freely use the facility.”

State officials believe Fortis may not be the only company possibly in violation of land allotment terms.