BMC okays UAE firm’s takeover of SevenHills Hospital

MUMBAI: Months after UAE-based BR Life emerged as the sole bidder for SevenHills Hospital, the BMC health department has given the green signal for the takeover after the private company agreed to clear all pending dues of the Marol hospital and also reserve 20% of the beds for poor patients.

A BMC official said a proposal for the firm’s takeover of the hospital management will be sent to municipal commissioner Ajoy Mehta soon for his clearance and then to the standing committee for final approval.

SevenHills, constructed on BMC-owned land around a decade ago, has been in the red since 2013. “The hospital has around Rs 140 crore dues to BMC and the BR Life is ready to clear that,” a senior official said. Recently the hospital was declared insolvent and bids were invited for taking over its management. Abu Dhabi-based BR Life, only bidder, and selected to manage the hospital. But before to initiate any further process, the management needs BMC approval to go ahead.

Additional municipal commissioner (BMC) I A Kundan said, “We asked the new management to fulfil all the conditions mentioned in earlier MoU and clear our pending dues. They agreed to our conditions and we have asked for a legal opinion.”

In 2005, the BMC gave a 70,000 sq mtr plot to SevenHills Healthcare on 30 years lease to build a 1,500-bed hospital on a public-private partnership basis. According to the MoU signed between them, the hospital will reserve 20% of its beds (including ICU) to treat poor patients freely. But as the hospital failed to fulfil its commitment, BMC filed a case. Some time ago, the hospital was declared bankrupt by the Hyderabad Bench of the National Company Law Tribunal for defaulting payment to creditors. An insolvency proceeding started against the hospital management.

A bid was invited for management of the hospital by an official looking after the insolvency process. The official recently met with Kundan to discuss further process for the UAE firm to take over the hospital management. Kundan had insisted that firm should first agree to clear BMC’s dues, which is over Rs 140 crore, and give guarantee to fulfil all previous commitments. Sources said the firm agreed to all the conditions.