Plaintiffs in case due to have money returned last year

BACKGROUND:THE PEOPLE who secured joint and several judgment orders for €1.9 million against Minister for Health Dr James Reilly and others are hoping they will have been paid the money they are owed by the time the orders come into effect.

The court has put a stay on the judgment orders until April 30th next.

Dr Reilly and his four partners are the owners of the Greenhill nursing home at Carrick-On-Suir, Co Tipperary, which is being run by one of them, Dr Dilip Jondhale.

The tax-driven nursing home project was initiated in 2000 and is said to be a success.

Dr Jondhale is a tenant of the home and a part-owner along with Dr Reilly and the other defendants in yesterday’s hearing, according to one of the plaintiffs, who did not wish to be named.

According to this source Dr Reilly and the others know each other well, unlike the group who are owed the €1.9 million, who are a disparate group of individuals who invested in the nursing home project because of the tax advantages it would involve.

This group was due to have its money returned last year but this has not yet happened, leading to yesterday’s judgment.

“There’s no rancour in this. I’m sure it’s a pain for everyone involved, including Dr Reilly,” the source said.

It is hoped that the fact of the judgment orders will press the defendants to come to an arrangement whereby the €1.9 million, as well as interest and costs, is paid.

Dr Jondhale could not be contacted yesterday.

A spokesman for Dr Reilly had no comment.

The judgment orders are joint and several, meaning that if, for example, four of the five defendants had no assets, the plaintiffs could seek the entire amount from the fifth defendant.

One of the Minister’s partners in the scheme, Fine Gael councillor Anne Devitt, has appeared before the Mahon tribunal.

In 2006 she denied that acceptance of €20,000 from a landowner for helping to solve a road access problem had created a conflict of interest for her.

Ms Devitt was chairwoman of the Northern Area Health Board between 2000 and 2002. At this time she negotiated access across health board lands in Swords on behalf of landowner Joe Moran and his company, Rayband Ltd.

She told the tribunal there was no conflict of interest and that health board officials knew at all times that she was acting as a consultant.

In 2009 the Revenue Commissioners defaulters’ list included Ms Devitt, who paid €50,000 in settlement of undeclared income tax and capital gains tax, interest and accumulated penalties.