BMC to ink deal with Capri Global to revive controversial Seven Hills Hospital

Capri Global has agreed to pay ₹183.51 crore directly to the BMC towards outstanding lease rent, property tax and other dues linked to Seven Hills Healthcare Private Limited, while an additional ₹39.97 crore pending in receivables will be paid once realised. The proposal will be tabled before the civic improvements committee on Wednesday.

MUMBAI: The BMC has revived the controversial Seven Hills Hospital project in Marol by proposing to lease the land to Capri Global for 30 years, extendable by another 30 years, with a settlement amount fixed at ₹223.48 crore. The civic body has approved a fresh settlement that will allow Capri Global to revive the long-stalled hospital project in Andheri East, with the company committing to investing ₹400 crore over the next five years to transform the facility into a 1,500-bed multi-speciality hospital.

BMC to ink deal with Capri Global to revive controversial Seven Hills Hospital

As part of the settlement, Capri Global has agreed to pay ₹183.51 crore directly to the BMC towards outstanding lease rent, property tax and other dues linked to Seven Hills Healthcare Private Limited, while an additional ₹39.97 crore pending in receivables will be paid once realised. The proposal will be tabled before the civic improvements committee on Wednesday.

The Seven Hills Hospital project, originally approved in 2004 under a public-private partnership model, remained embroiled in disputes, delays and insolvency proceedings for years. The earlier operator, along with construction partner Soma International, was accused by the BMC of failing to operationalise the promised capacity, reserve beds for poor patients and clear mounting civic dues. During the Covid-19 pandemic, the BMC converted the facility into a dedicated Covid hospital and expanded its capacity to nearly 1,500 beds.

As the insolvency proceedings continued, both Jupiter Lifeline Hospitals Private Limited and Capri Global submitted competing resolution plans. According to the BMC, Jupiter’s proposal sought waiver of municipal dues and was therefore not considered favourable to the corporation.

The draft agreement permits Capri Global to construct several ancillary and commercial facilities, including pharmacies, gift shops, communication booths, diagnostic centres, guesthouses for relatives of patients, medical institutes or colleges, gymnasiums, recreation centres and restaurants besides other uses permissible under Development Control Regulations.

According to the BMC’s note dated April 21, 2026, the revived hospital will operate with 1,500 beds, including 300 beds reserved for municipal patients under the original public-private partnership agreement. Capri Global will continue with this 20% reserved bed and outpatient department (OPD) scheme for poor patients through a fresh memorandum of understanding with the civic body. It will have to complete the project within five years from the handover date.

The proposal has triggered strong criticism from the opposition. Congress group leader Ashraf Azmi alleged that the BMC had structured the agreement in a way that made it impossible to terminate it for the next 30 years even in the event of irregularities. “Allowing them to construct gift shops, restaurants for relatives, gymnasiums and recreational facilities will lead to large-scale commercialisation of prime public land,” he said. “They can even sub-lease the property and yet the lease cannot be terminated. What is the reason for the BMC to give away such prime land for a pittance?”

Azmi further claimed that the land near the airport was worth nearly ₹5,000 crore and could instead have been used for a medical college. “What is the guarantee that 20% of beds will actually be reserved for the poor?” he asked. “This is an outright sellout.”

Azmi further alleged that the agreement had been signed on December 12, 2025, by former civic chief Bhushan Gagrani just before the election code of conduct came into force and without waiting for an elected body to be constituted. He also questioned Capri Global’s healthcare credentials, saying that the company lacked experience in operating hospitals of such a scale. “There is no hospital in India with a capacity of 1,500 beds being run in this manner,” he said. “The state government should intervene in this.”