A curt reply sent to a former health committee chairperson states the facility has debts amounting to Rs 1,137 crore
The hospital's financial status has been in controversy for one year
Rohini Kamble, former health committee chairperson wrote to the Brihanmumbai Municipal Corporation (BMC) in April to take over the Seven Hills Hospital and use its super specialty services and develop it into a medical college. The civic body, however, in its reply to Kamble has stated that owing to litigation and various other issues, it might not be possible.
The hospital's financial status has been in controversy over the last year, following which, Kamble made the suggestion to the BMC, as it would have helped those residing in Andheri East, Powai and Kurla areas. At present, there are hardly any super specialty hospitals in the locality to cater to the medical needs of citizens.
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The BMC's reply was sent to Kamble in November, specifying that the hospital has debts amounting to Rs 1,137 crore and explaining about the Corporate Insolvency Resolution Process that has begun on the establishment. It also stated that accepting this proposal would not be ideal as the matter is still in litigation. The civic administration further said that the hospital has not cleared its lease rent of Rs 76 crore and property tax of Rs 47 crore.
A civic official, seeking anonymity, said, "This was not an ideal choice to make as we too have our dues which are yet to be recovered. Further, the matter is still in litigation." In the letter, the BMC has also mentioned that their application has been accepted by the Hyderabad bench of National Company Law Tribunal (NCLT) in March as their debts too run into R123 crore. According to reports, the hospital is likely to be taken over by a private entity.
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