After several private organisations violated terms of contract and owe it amounts to the tune of Rs 3 crore, the BMC has now come out with a new policy for municipal structures given on Public Private Partnership (PPP) basis. This policy was formed after a High Court order. The civic body has made it clear that those who have violated the terms and yet want to continue to occupy the structure, will have to pay rent as per market rate from the very beginning. This effectively means the private organisations will not get any benefit. The move comes after several prominent organisations violated terms of the agreement with the BMC and later moved court.

The BMC, in 2004, entered into agreements with several private healthcare organisations under a PPP model. In most cases, they were given municipal maternity homes to be operated by them. The rules were clear: the private party would have to pay a nominal rent of Re 1 but they would have to pay property tax, water, electricity bill etc. Also, they were not allowed to make any other use of the structure apart from the stipulated one. No additions/alterations to the structure were allowed. But the BMC soon started noticing violations of the terms and sent show-cause notices to several of them.