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PMC health dept seeks details from Sahyadri Hospital on lease, trust compliance
According to officials, the notice follows a complaint stating that the hospital premises—spread across 23,000 square feet—were originally leased by the PMC to the charitable trust in 1998 for a nominal fee of ₹1 per year for 99 years, with the express purpose of providing affordable medical care
The health department of the Pune Municipal Corporation (PMC) on Thursday served show cause notice to the Konkan Mitra Mandal Medical Trust, which manages the Sahyadri Super Specialty Hospital (Karve Road), over alleged violations related to Sahyadri Hospital’s reported transfer to the Manipal Hospitals Group.
According to officials, the notice follows a complaint stating that the hospital premises—spread across 23,000 square feet—were originally leased by the PMC to the charitable trust in 1998 for a nominal fee of ₹1 per year for 99 years, with the express purpose of providing affordable medical care.
According to the complainant, the facility was first transferred to Everstone Capital (reportedly with PMC’s tacit approval), then to the Ontario Teachers’ Pension Plan (OTPP) in 2022, and is now being acquired by Manipal Hospitals Group—all without prior permission from the PMC, in violation of the lease’s charitable terms.
The civic body has demanded an explanation from the trust and is investigating whether the transfer violates the original lease conditions, as well as provisions of the Maharashtra Public Trusts Act 1950 and Maharashtra Municipal Corporations Act 1949.
Confirming the development, Dr Nina Borade, chief of the PMC health department, said, “A notice has been issued to the trust that owns Sahyadri Hospital. We have asked the trust to explain the reported transfer of ownership. While the PMC’s authority is limited in private hospital operations, we will scrutinise the aspects that fall within our jurisdiction.”
Earlier this week, the land estate management department of the PMC, too, served notice to the trust, seeking documentation of the deal with Manipal Hospitals, mortgage status of the land, and permissions obtained from the civic administration.
The complaint further noted that the trust was granted additional floor space index (FSI) with the condition that 27 beds would be reserved for economically weaker patients.
The Sahyadri Hospitals’ chain operates 11 facilities across Pune, Nashik, Ahilyanagar, and Karad, with over 1,300 beds, 2,500 clinicians, and 3,500 support staff. In 2019, the hospital was sold by its founder, neurosurgeon Dr Charudutt Apte, to Everstone Capital for about ₹1,000 crore. In August 2022, Canada-based OTPP acquired it from Everstone for an estimated ₹2,500 crore. The current acquisition by Temasek-backed Manipal Hospitals is pegged at around ₹6,400 crore.
Meanwhile, Dr Amitkumar Khatu, chief legal and compliance officer at Sahyadri Hospitals Group, responded clarifying that the transaction involves a change in equity ownership, not in operational control or intent.
“This equity transfer will not impact the functioning, commitment, or ethos of Sahyadri Hospitals across our Maharashtra units. Similar stake transfers have occurred in the past, and patient care has continued seamlessly each time. The Deccan Hospital, operated by a charitable trust, remains unaffected in terms of its obligations and legal structure,” Dr Khatu said.
He added that the Karve Road land was leased in 1998 upon full payment of lease premium and rent for 99 years. “We comply with the PMC agreement by offering free treatment to all patients referred by the corporation—around 260 bed days annually. Every eligible patient is assisted by our social work team to avail subsidised or free care,” Dr Khatu said.
Referring to recent concerns, Dr Khatu said, “We urge the public not to be misled by misinformation. Our doctors remain committed, and patient-first care continues to be our mission.”
