Re-mumbai

Opposition Parties Criticise BMC’s Plan To Lease Seven Hills Hospital To Private Operator

Opposition parties in Mumbai have raised objections to the Brihanmumbai Municipal Corporation’s proposal to revive the defunct Seven Hills Hospital in Andheri (East) through a long-term agreement with a private operator.

The civic body recently selected Capri Global Holdings to operate the hospital under a proposed 30-year lease arrangement. The hospital has remained non-operational since 2018.

On Thursday, Pramod Sawant of the Shiv Sena (UBT) opposed the move at a press conference, arguing that the city’s major public healthcare infrastructure should remain affordable and accessible to ordinary citizens.

“Seven Hills is one of the biggest civic health infrastructure in Mumbai, and instead of ensuring that common citizens get treatment at a subsidised rate, the BMC is handing it to a private player, a move that is only going to increase the treatment cost for citizens,” Sawant said.

Seven Hills Hospital originally became operational in 2004 after the civic body awarded the project to Soma International under a similar 30-year lease model. However, in 2018, the BMC terminated the agreement after the operator allegedly failed to meet contractual obligations, with only 306 beds, or nearly 20% of the hospital’s total capacity, remaining functional.

According to civic records, unpaid property tax dues on the hospital later rose to approximately Rs 140.88 crore. The dispute subsequently reached the National Company Law Tribunal (NCLT), though the BMC later accepted a settlement package of Rs 223.48 crore from the incoming operator.

Under the proposed agreement, the new operator will also pay annual rent of Rs 10.4 crore, with a 10% escalation every ten years.

“The cost of the property stands at Rs 3,000 crore; however, the BMC is handing it to the private players at a mere cost of Rs 223 crore. This is absolutely not fair and proper wastage of civic infrastructure,” Sawant said.

Ashraf Azmi from the Indian National Congress also criticised the proposal, alleging that the revised lease terms disproportionately favour private entities.

BMC documents state that once operational, 20% of the hospital’s 1,500 beds and OPD services will remain reserved for patients referred from civic hospitals at municipal treatment rates.

Source: The Indian Express

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