Congress Slams BMC Over Seven Hills Hospital Lease & Insolvency Deal

Mumbai: The Congress party has raised strong objection against the proposed settlement agreement, revised lease deed and long-term restructuring of Seven Hills Hospital in Marol, Andheri. Highlighting the massive failure of the 1500-bed multi-speciality hospital's original public-private partnership (PPP) structure, Congress' Group leader Ashraf Azmi said that BMC should seriously examine whether in future property tax and lease-rent disputes under municipal laws should continue getting absorbed into insolvency resolution frameworks under IBC, as this may have major long-term consequences for municipal revenue recovery.

The FPJ had reported on May 15 that BMC is in the final stages of signing a major agreement with Capri Global to revive and redevelop the long-stalled Seven Hills Hospital project, ending years of controversy and legal disputes.

Azmi said that the BMC entered into agreement with Joint Venture of Seven Hills and Soma Constructions Ltd for development of plot at Marol for hospital purposes, with BMC receiving rights for treatment of 20% patients free of cost or at BMC-approved rates. However, controversies began since it's inauguration in July 2010 as the Seven Hills Hospital (SHPL) failed to comply with the terms and conditions. The hospital not only failed to pay property tax from the date of takeover, but also did not pay even a single yearly lease rent instalment of 10.41 crores from commencement of the project, as it faces financial strains."

"Finally, when notices for termination of contract were issued in January 2018, SHPL creditors, upon learning of BMC acquisition notices, approached Corporate Insolvency Resolution Proceedings (CIRP) under the Insolvency and Bankruptcy Code (IBF) in March 2018. But, the BMC's legal stand during CIRP proceedings was not properly defined and serious concerns arise regarding whether the applicability of IBC provisions to municipal property tax and lease-rent disputes was adequately contested."

Also Watch:

The party has demanded to recall the proposal from the civic improvement committee agenda for wider public, legal and policy scrutiny before any irreversible long-term commitments are finalized.

Azmi said, "The hospital has saved thousands of lives during Covid pandemic, we oppose giving it to a private party and BMC should run it. But it seems tha BMC has already decided to hand over the Seven Hill Hospital to a private company, Capri Global. A agreement was signed with Capri Global on 12 December 2025, and on 15 December 2025, before the code of conduct came into effect, the BMC gave NOC to the company on this proposal. If the proposal was yet to present before the Improvement committee, on what basis did the BMC sign the agreement with the company?"

To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/