BMC panel clears revival of SevenHills Hospital under reworked PPP with Capri Global

The proposal first came before the Improvements Committee in May but remained undecided after a heated discussion

MUMBAI: In a significant step towards reviving one of the city’s largest stalled healthcare projects, the BMC Improvements Committee on Tuesday approved a proposal to revive the long-delayed SevenHills Hospital project at Marol through a restructured public-private partnership (PPP) with Capri Global Holdings Pvt Ltd. The proposal was cleared by the Shiv Sena-BJP-led ruling alliance despite strong objections from the opposition Shiv Sena (UBT) and Congress.

Mumbai, India - March, 26, 2020 : Seven Hills Hospital in Marol, Andheri, was reopened on March 18 by BMC to run the biggest Covid-19 quarantine facility in Maharashtra. HT Photo (Hindustan Times)

The proposal first came before the Improvements Committee in May but remained undecided after a heated discussion. On Tuesday, it was tabled again. Opposition members once more questioned the need to bring in a private operator and objected to the proposal being processed without being put to the vote. Despite this, Improvements Committee chairperson and Sena corporator Sandhya Doshi approved the proposal with the municipal secretary, declaring that voting was not the due process followed in the Improvements Committee.

The proposal comes after the National Company Law Tribunal’s (NCLT) approval of the corporate insolvency resolution plan for SevenHills Healthcare Pvt Ltd (SHPL). The BMC will now execute a fresh agreement with the successful resolution applicant, Capri Global Holdings Pvt Ltd, while retaining key public health obligations under the original agreement. Capri Global will receive equity-based support from Reliance Foundation, which manages H N Reliance Hospital in Girgaum.

The SevenHills Hospital project was conceived in 2004 when the BMC allotted around 66,688 square metres of municipal land at Marol, Andheri East, to SevenHills Hospitals Ltd and Soma International under a PPP model to build and operate a 1,300-bed multi-speciality hospital. The private operator was required to reserve 20% of hospital beds and OPD services for BMC-referred patients at civic rates.

After 13 years, in January 2018, the BMC initiated termination proceedings on the grounds that SevenHills had developed only 306 beds, failed to provide treatment to municipal patients, defaulted on lease rent and property tax of ₹140.88 crore, and violated several provisions of the 2005 contract agreement and the 2013 memorandum of understanding.

The matter subsequently went through insolvency proceedings before the NCLAT and the Supreme Court. As part of the insolvency process, two bidders, Jupiter Lifeline Hospitals Pvt Ltd and Capri Global Holdings Pvt Ltd, submitted resolution plans for the hospital. The BMC rejected Jupiter’s offer after it sought a waiver of civic dues and accepted Capri Global’s revised proposal.

The NCLT’s Amravati Bench approved Capri Global’s resolution plan on January 19, 2026, and uploaded the order on January 28, 2026.

Capri Global has agreed to pay ₹183.51 crore directly to the BMC towards lease rent, property tax and other dues, besides another ₹39.97 crore once pending receivables are realised. The company has also committed to investing ₹400 crore over the next five years to modernise and upgrade the hospital.

Under the revised plan, the hospital will be developed as a 1,500-bed multi-speciality and super-speciality facility with revenues earmarked for medical services, infrastructure improvement and quality enhancement. The fresh proposal also retains the original condition of reserving 300 beds and 20% of OPD services for BMC patients.

The proposal sought approval for a fresh settlement agreement among BMC, SevenHills Healthcare and Capri Global. It also formalises acceptance of the settlement amount and allows the PPP project to continue under revised contractual safeguards and timelines.